TOKYO: Tocom rubber futures were slightly down after reaching a two-month high on Tuesday. However, rubber futures are supported by hopes the U.S. Federal Reserve could unleash more stimulus at the end of its two-day policy meeting this week.
The key Tokyo Commodity Exchange rubber contract for May delivery was down by 1.0 yen at 266.5 yen as of 14.45 JST. The benchmark contract rose as high as 269.2 yen, the highest since 271.0 hit on October, 12.
Indian natural rubber futures are likely to edge higher this week on bargain hunting, driven by an upside in overseas markets and as demand from tyre makers improved in local spot markets.
At the end of the two-day meeting which begins on Tuesday, the Fed is expected to announce it will buy $45 bn per month of longer-dated treasuries beginning in January to replace the current Operation Twist programme, which expires at the end of December.
Brent oil prices rose slightly on Monday after Chinese data showed oil imports increased last month, a sign of robust demand for commodities in the world’s second largest oil consuming country.
Source: Rubber Country
