Rubber retreated from a one-week high after the International Monetary Fund cut its global growth outlook for this year and next, raising concern demand may weaken for the commodity used in tires.
The contract for March delivery on the Tokyo Commodity Exchange fell as much as 1.1 percent to 261.2 yen a kilogram ($2,688 a metric ton) and traded at 263.1 yen at 10:30 a.m. Futures jumped the most in five weeks yesterday to settle at the highest level since Sept. 30.
Growth worldwide will be 2.9 percent this year and 3.6 percent next year, the IMF said yesterday, compared with July predictions of 3.1 percent and 3.8 percent. It warned a U.S. government default could “seriously damage” the world economy while capital outflows would weaken emerging markets.
“A slowdown in emerging economies may curb demand for the commodity,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo.
Losses in futures were limited by speculation that the Federal Reserve may delay tapering of its bond-buying program to support the world’s largest economy as a political stalemate overgovernment spending continues, he said.
Rubber for January delivery on the Shanghai Futures Exchange lost 0.2 percent to 20,550 yuan($3,356) a ton. Thai rubber free-on-board gained 1.9 percent to 79.5 baht ($2.53) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
