Rubber Pares Worst Quarter in Year on Hopes of U.S. StimulusSupunnabul Suwannakij
Rubber recovered from a nine-month low, paring the biggest quarterly decline in a year, amid optimism the U.S. Federal Reserve will maintain stimulus after slower-than-estimated growth in the U.S. economy.
The contract for delivery in December gained 1.3 percent to end at 230.1 yen a kilogram ($2,345 a metric ton) on the Tokyo Commodity Exchange. Futures have lost 16 percent this quarter, the most since the three months ended June 2012.
Asian stocks extended a global rebound, following gains of U.S. indexes after the world’s biggest economy revised its reading for first-quarter growth lower and as a drop in Chinese interest-rate swaps eased concerns over a cash crunch.
“The U.S. GDP revision lower yesterday makes market participants believe that the Fed’s tapering might be postponed,” said Naohiro Niimura, a partner at research company Market Risk Advisory Co. in Tokyo.
Rubber for January delivery on the Shanghai Futures Exchange added 0.7 percent to close at 17,760 yuan ($2,888) a ton. Natural-rubber inventories rose for a third week, climbing 48 tons to 114,556 tons, the bourse said June 21.
Thai rubber free-on-board remained unchanged at 85.40 baht ($2.74) a kilogram today, according to the Rubber Research Institute of Thailand. Rain spreads across 40 percent to 60 percent of the Thai south, the country’s main plantation area, disrupting tapping, the institute said.