ERJ staff report (TP)
Bangkok − Rubber dropped for a second day as rising stockpiles in China and Japan signalled a slow demand reported Supunnabul Suwannakij for Bloomberg.
Futures for delivery in May on the Tokyo Commodity Exchange fell as much as 0.7 percent to 279.2 yen (€1.970) a kg before trading at 280 yen (€1.975) at 11:39 am (Japan time, 18 December). Prices fell 7.4 percent this year.
Rubber inventories in Qingdao, China’s main hub for the commodity, advanced for a third week to 282,700 tonnes from 276,300 tonnes at the end of November, according to the Qingdao International Rubber Exchange. Crude rubber stockpiles held at Japanese warehouses rose 16.7 percent to 10,875 tonnes on 30 November, the highest level since 10 July, according to data from the Rubber Trade Association of Japan.
“Stocks in Qingdao and Japan are at high levels, raising concerns the demand for rubber will slow ahead of holiday seasons,” said Megumi Saito, trader at commodity broker Yutaka Shoji Co. Some players have reduced positions while waiting for a Federal Reserve decision on its monthly stimulus program.
The Federal Reserve may begin cutting economic stimulus at its meeting today (18 December), according to 34 percent of economists in a 6 December Bloomberg survey, up from 17 percent in an 8 November poll.
The contract for May delivery on the Shanghai Futures Exchange dropped 0.6 percent to 19,300 yuan (€2,313) a tonne. Thai rubber free-on-board dropped 0.4 percent to 83.35 baht (€1.88) a kg yesterday (17 December), according to the Rubber Research Institute of Thailand.
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