The rubber price rally ended today, Monday (27/11/2017), closing in the red zone as crude prices weaken.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.77% or 1.50 points to 194.20 yen per kilogram (kg).
Previously, the movement of rubber prices opened stagnant at 195.70 position, after trading on Friday (24/11) closed 2.30% or 4.40 points higher at 195.70.
According to Kazuhiko Saito, an analyst at Fujitomi's commodity brokerage, the strength of the yen and the weakening of crude oil prices became a suppressive sentiment towards the rubber market.
"Despite this, the weakening level is limited by rubber stocks in Shanghai, China, which are declining sharply," Saito added, as quoted by Bloomberg.
China's rubber inventories monitored by the Shanghai Futures Exchange fell 37% to 322,408 tonnes last week, down from their highest level since at least 2003.
Meanwhile, the price of West Texas Intermediate (WTI) oil contracts in January 2018 fell 0.47% or 0.28 points to US $ 58.67 per barrel at 13.40 WIB, after opening stagnant at US $ 58.95. At the same time, Brent oil for January delivery fell 0.04 points to 63.82 per barrel.
Also weighing on the rubber, the yen appreciated 0.11 percent or 0.12 points to 111.41 per dollar at 13.49 pm, after Friday (24/11) ended down 0.29 percent at 111.53 .
The appreciation of the Japanese yen exchange rate against the US dollar makes commodity prices traded in these currencies become relatively more expensive for overseas buyers. As a result, demand for these commodities has the potential to decline.
No comments:
Post a Comment