The movement of rubber prices fell by almost one percent in trading this morning on Wednesday (8/11/2017), in line with the weakening of crude oil prices and appreciation of Japanese yen.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.92 percent or 1.90 points to 204.10 yen per kilogram (kg) at 10.50 pm.
Previously, rubber prices opened stagnant at position 206 after trading on Tuesday (7/11) ended up 0.49% or 1 point. The weakening of rubber this morning at the same time stop the rally posted four consecutive trading days before.
According to Naohiro Niimura, a partner at Market Risk Advisory, rubber prices are affected by profit taking.
"Profit is taking place on risk assets amid weaker crude oil prices, a stronger yen, and a Nikkei slump," said Niimura, as quoted by Bloomberg.
The price of West Texas Intermediate oil for December 2017 shipment fell 0.37% to US $ 56.99 per barrel on the New York Mercantile Exchange at 10:48 pm, after trading on Tuesday ended down 0.26% at 57.20.
US crude oil prices extended their losses this morning as weighed by industry reports on crude and petrol stockpiles.
Meanwhile, the yen appreciated 0.17 percent, or 0.19 points, to 113.81 per dollar at 10:57 pm, after falling 0.26 percent on Tuesday at 114.
The strength of the yen weighed down on the Japanese stock exchange, with the Nikkei 225 Stock Average slipping from its highest level since January 1992 this morning, as some technical indicators signaled that the recent rally of lobs is seen to be overwhelming
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