A sixth year of global surplus may depress rubber prices through 2016 as maturing trees boost production and slowing growth reduces demand in China, the biggest consumer, according to an industry adviser.
The Federal Reserve will release minutes from its April meeting at which the Federal Open Market Committee said it would cut bond buying as the economy picks up after winter weather slowed first-quarter growth.
Natural rubber demand may grow 4.6 percent this year, boosted by strong vehicle sales, with consumption continuing to outpace supply in coming years, according to the International Rubber Study Group .
The global natural rubber stocks-to- use ratio has plunged to the lowest level ever as expanding demand shrinks inventories in China, potentially boosting prices, according to RCMA Commodities Asia Pte Ltd.
Rubber climbed by the most in a week after China signaled it will unshackle the yuan’s fixed rate to the dollar, stoking speculation the world’s largest consumer may boost imports of the commodity used in tires.
Rubber climbed for a second day to one-week high on optimism that Japan and China will soon build up stockpiles amid concerns that rainfall in southern Thailand will further cut scarce supplies from the largest exporter.