Rubber futures finished slightly higher for the second straight session Thursday, as bargain hunters helped to boost prices and investors covered short positions following the latest U.S. Federal Open Market Committee meeting.
Prices have fallen to a level that traders and investors are now attracted to buying even if the end users remain on the sidelines, a trader said.
Investors were awaiting developments from the Communist Party’s annual plenum in China–where officials lay out the nation’s economic plan for the next five years–in the hopes that there will be an announcement of some stimulus for markets, which could boost rubber demand.
Earlier in the session, Singapore-listed Indo Agri said rubber prices on the Sicom continued on the downward trend that started in 2012.
“This was due to higher rubber production in Thailand and Indonesia, as well as weaker demand from major rubber consuming markets, particularly China, the U.S. and Europe, and more recently lower crude oil prices,” it said in a statement. “In the medium term, prices will remain under pressure until global demand recovers.”
Asian Rubber Futures Oct. 29 Change from previous close Tocom Apr RSS3 Y162/Kg Up Y2.3 Shanghai Jan SCR5 CNY10,910/Ton Up CNY100 Thai Jun RSS3 THB47.50/Kg Up THB0.15 Sicom Feb RSS3 US 130.0 cents/Kg Up US 1.0 Sicom Feb TSR20 US 120.0 cents/Kg Up US 0.1 Asian Physical Rubber Grade Shipment Oct 29 Oct 28 RSS3 Nov/Dec 126-127 125-126 STR20 Nov/Dec 124-125 124-135 SIR20 Nov/Dec 122-120 125-119 SMR20 Nov/Dec 123-124 124-125 SVR3L Nov 130 131 USS Oct THB38.80-THB39.00/Kg THB38.80-THB39.00/Kg
Write to Lucy Craymer