Markets cautious

World markets were cautious on Wednesday as investors waited to see if the Federal Reserve might announce it is trimming its massive stimulus program. The Federal Reserve has announced that it will cut its monthly bond-buying programme by $10bn a month from January. In a statement, finance minister P. Chidambaram said, India is better prepared now to deal with the consequences of a mild tapering by the US Federal Reserve than it was earlier this year. Markets have already factored in the decisions of the US Federal Reserve.

Rubber prices on Tokyo Commodity Exchange fluctuated near a three-month high as the U.S. Federal Reserve starts its two-day meeting and amid speculation that Chinese buyers will boost purchases before Thailand restarts export fees on shipments from January after a four-month exemption. Prices touched ¥287.9 a kg on Monday, the highest intra-day level since 9th September 2013.

On Wednesday, RSS4 grade closed at `.153 a kg at Kottayam. While today on National Multi Commodity Exchange January 2014 futures were trading at `.157.65 a kg, February at `.159.86 and March at `.162.66 a kg, at 13.20 IST. RSS3 grade closed at `.159.65 a kg at Bangkok, while Malaysian SMR20 closed at `.142.87 a kg. Tokyo Commodity Exchange, December futures series closed at ¥285 a kg, January 2014 at ¥279.8, February at ¥278, March at ¥278.1, April at ¥278.7 and the contract for delivery in May 2014 at ¥280.6 a kg.

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Read lot more in Rubber4U – 1st January 2014 issue