SHFE rubber slumps on Thu., down nearly 3.5%

Rubber futures traded on the Shanghai Futures Exchange (SHFE) widened loss in the first trading hour on Thursday (February 21, 2013) and kept choppy in tight range in the remainder of the day before ending as much as 3.5% lower, as Federal Reserve officials showed uneasiness with potential risks from the current monetary policies.

The most actively traded contract for May 2013 delivery ended at 25,085 yuan/metric ton, down 905 yuan or 3.48%.

According to the minutes of the last Fed meeting, released on Wednesday, a number of senior officials were concerned about the risks involved in the Fed's massive bond-buying program, and warned that the initiative might be hard to stop in the future.

The news triggered a sell-off in the equity and commodity markets worldwide, with all the major indices falling after the minutes' release. The Dow Jones Industrial Average closed down 108 points, erasing two days of gains.

Despite of macroeconomic uncertainties, bullish signs still exist as seasonal factors might offer some upside momentum in the near term, analysts note.

(Contributed by Olivia, olivia@tireworld.com.cn)