Rubber price movements again ended in the red zone in trading today, Friday (06/23/2017), due to burdened by the prospect of rising supply and slow purchasing activity.
The price of rubber for delivery in November 2017, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.11% or 0.20 points to 189.30 yen per kilogram (kg).
This morning, even opened the rubber price with a sharp weakening of 1.06% or 2 points at position 187.50.
In fact, the price of November contract rubber managed to score a rebound almost two percent yesterday after falling for several days earlier.
"Supply continues to rise, while there is no new resolution on export restrictions by some exporting countries," said We Tan, marketing manager at Shanghai Reascent Industrial, as quoted by Bloomberg.
At the same time, he added, the purchasing rate looks much slower than the supply growth rate.
As is known, meeting rubber exporting countries at the meeting last weekend did not spawn the results or agreement as expected.
On the other hand, the amount of inventories in China rose with the expected increase in supply due to the continuing rubber tapping process.
Total rubber stocks monitored by the Shanghai Futures Exchange rose 1.8% to 353,222 tonnes on June 15, the highest level since Nov. 17.
In addition to pressing the rubber, the yen today continued to appreciate 0.07% or 0.08 points to 111.25 yen per US dollar at 13:53 pm, after yesterday closed up 0.04% at 111.33.
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