Rubber prices continued to slide and slipped to 188 levels in the fifth straight day of trading on Tuesday (21/11/2017), amid concerns over higher stocks.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.53 percent, or 1 point, to 188.50 yen per kilogram (kg) at 10:51 pm.
Previously, the rubber price opened with a gain of 0.21% at 189.90 position after on Monday (20/11) ended down 0.42% at position 189.50.
"High levels of inventories in Japan and China continue to push down rubber prices," said Felix Yeo, Director of RCMA Asia Pte., As quoted by Bloomberg.
The total rubber stocks monitored by the Shanghai Futures Exchange rose 2.2% to 510,356 tonnes over the week ended Nov. 16, an increase for the 23rd consecutive week.
Meanwhile, Japan's crude rubber inventories increased 9.1% to 5,784 tonnes in 10 days to 20 October.
In addition to high stocks, added Yeo, the strengthening performance of the yen currency also suppress the rubber.
The yen today was observed to rise 0.09% or 0.10 points to 112.52 per US dollar at 10:59 pm after stagnating at 112.62.
As is known, the strengthening of the Japanese yen exchange rate against the US dollar makes the price of commodities traded in this currency to be relatively more expensive for overseas buyers. As a result, demand for these commodities has the potential to decline.
No comments:
Post a Comment