Rubber prices moved lower in trading today, Friday (29/12/2017) and headed for annual decline.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 1.34 percent or 2.80 points to 206.80 yen per kilogram at 10.03 pm.
Earlier, the May rubber futures contract opened up 0.24% at 206.80, after trading on Thursday (28/12) ended down 1.04% or 2.2 points to 209.60 yen per kg.
According to Gu Jiong Saito, an analyst at brokerage firm Yutaka Shoji in Tokyo, investors are attractively adjusting them ahead of the 2018 New Year holiday.
In addition, he added, the weakening also occurred due to the strengthening of the yen against the US dollar.
The yen appreciated by 0.08% or 0.09 points to 112.78 per US dollar at 11:40 pm.
Thursday, December 28, 2017
U.S. oil prices climb to highest since mid-2015 on surprise output drop
U.S. oil prices hit their highest levels since mid-2015 on the last trading day of the year as an unexpected fall in American production, as well as a fall in commercial crude inventories, stoked buying.
In international markets, Brent crude oil futures were also up, supported by ongoing supply cuts by top producers OPEC and Russia.
U.S. West Texas Intermediate (WTI) crude futures were at $60.16 a barrel at 0210 GMT, up 33 cents or 0.5 percent from their last close. The rise saw WTI hitting its highest level since June 2015 on the final trading day of 2017.
Brent crude futures - the international benchmark for oil prices - were also up, rising 33 cents or 0.5 percent to $66.49 a barrel. Brent broke through $67 earlier this week for the first time since May 2015.
The price rises were driven by a surprise drop in U.S. oil production, which last week dipped to 9.754 million barrels per day (bpd), down from 9.789 million bpd the previous week, according to data from the Energy Information Administration (EIA) released late on Thursday.
U.S. output is still up by almost 16 percent since mid-2016, but most analysts had expected production to break through 10 million bpd by the end of this year - a level only surpassed by top exporter Saudi Arabia and top producer Russia.
WTI prices were further boosted by a fall in U.S. commercial crude storage levels, which dropped by 4.6 million barrels in the week to Dec. 22 to 431.9 million barrels, according to the EIA.
Inventories are now down by almost 20 percent from their historic highs last March, and well below this time last year or in 2015.
A YEAR OF CUTS
In international markets, Brent prices have been supported by a year of production cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) and Russia. The cuts started last January and are scheduled to cover all of 2018.
Pipeline outages in Libya and the North Sea have also been supporting oil prices, although both these disruptions are expected to be resolved by early January.
Consultancy JBC Energy said the Libyan pipeline outages had "no major impact on exports".
Heading into 2018, traders said market conditions were relatively tight due to healthy demand growth and the OPEC and Russia-led supply cuts.
Ahead of Year's End, Rubber Prices Closed Down 1.04%
Rubber prices closed lower on trading today, Thursday (28/12/2017) as investors off ownership towards the end of trading in 2017.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.04% or 2.20 points at 209.60 yen per kilogram (kg).
Earlier, the May rubber futures contract opened 0.57% lower at 210.60, after trading on Wednesday (27/12) ended down 0.14% or 0.3 points to 211.80 yen per kg.
According to Kazuhiko Saito, an analyst at Fujitomi brokerage firm in Tokyo, investors are pulling their positions ahead of the final holiday of 2017.
"(In addition), the weakening occurred amid the strengthening of the yen," Kazuhiko said.
The yen appreciated 0.57% or 0.65 points to 112.70 per dollar at 14.05 pm.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.04% or 2.20 points at 209.60 yen per kilogram (kg).
Earlier, the May rubber futures contract opened 0.57% lower at 210.60, after trading on Wednesday (27/12) ended down 0.14% or 0.3 points to 211.80 yen per kg.
According to Kazuhiko Saito, an analyst at Fujitomi brokerage firm in Tokyo, investors are pulling their positions ahead of the final holiday of 2017.
"(In addition), the weakening occurred amid the strengthening of the yen," Kazuhiko said.
The yen appreciated 0.57% or 0.65 points to 112.70 per dollar at 14.05 pm.
TOCOM slips from 3-mth high on position adjustment, higher yen
Benchmark TOCOM rubber futures slipped on Thursday, sliding from a three-month high hit the previous day, as investors unwound positions ahead of new year holidays, while a stronger yen against the US dollar added to pressure.
"Trade was thin as many Japanese traders closed books for this year on Thursday and some investors were already away for new year holidays," said a Tokyo-based dealer who declined to be named.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 2.2 yen, or 1.0%, lower at 209.6 yen (US$1.86) per kg.
It hit its highest since Sept 28 at 213.8 yen in the previous session.
The exchange will be closed from Monday to Wednesday next week.
The US dollar slid broadly on Thursday, hampered by a recent dip in US 10-year bond yields. Against the yen, it slid 0.5% to 112.78 yen.
A higher yen makes yen-denominated assets less affordable when purchased in other currencies.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 80 yuan to finish at 14,200 yuan (US$2,173) per tonne.
"Rubber prices are expected to stay under pressure next year unless top producers cut output to help reduce inventory overhang as demand is predicted to increase only by 1-2% from this year," the dealer said.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 147 US cents per kg, down 1.9 cent.
Tuesday, December 26, 2017
Oil Rally Effect on Price of Rubber Continue Stronger
The strengthening of rubber prices continued in trading this morning, Wednesday (27/12/2017), supported by the effects of crude oil rally and the steps of some countries to hoist prices.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.19% or 0.40 points to 212.50 yen per kilogram (kg) at 10:20 pm.
Earlier, the May rubber futures contract stagnated at 212.10, after trading on Tuesday (26/12) ended up with a gain of 1.78% or 3.70 points.
According to Kazuhiko Saito, an analyst at Fujitomi brokerage firm in Tokyo, the continued strengthening of rubber prices is supported by the surge in crude oil prices on Tuesday.
On Tuesday, West Texas Intermediate oil futures for February delivery closed up 1.50 points at US $ 59.97 per barrel, the highest level since June 2015.
Brent oil for February delivery ended up 2.71% or 1.77 points at $ 67.02 a barrel on the London-based ICE Futures Europe exchange, its highest level since May 2015.
"Rubber prices are also getting support from the steps of a number of producing countries to cut supply," added Saito, as quoted by Bloomberg.
Three rubber-producing countries agreed to cut rubber exports by 350,000 tons by March 2018.
Indonesia, Malaysia and Thailand joined the International Tripartite Rubber Council (ITRC), agreed to re-implement the Agreed Export Tonnage Scheme or rubber export restrictions in December to March 2018 to raise the price of the commodity.
Director of the APEC and International Trade Organization Deny Wachyudi Kurnia explained that in the export restriction, Indonesia received 95,190 tons. Meanwhile, Thailand 234,810 tons and Malaysia 20,000 tons.
He revealed the agreement was generated in an ITRC meeting held in Bangkok, Thailand, Friday (22/12). It said it would ask Vietnam's support as another big rubber producer who just joined the ITRC some time ago.
Meanwhile, Vietnam's Ministry of Agriculture and Rural Development today reported that export of Vietnam rubber in 2017 is estimated at 1.39 million tons, up 11% y-o-y, while rubber exports in November reached 145,000 tons from an earlier estimate of 143,000 tons.
Supporting the rubber, the yen appreciated a thin 0.03% or 0.03 point drop to 113.26 per US dollar at 10:26 am on Tuesday (26/12) ending up just 0.01% at 113 , 23.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.19% or 0.40 points to 212.50 yen per kilogram (kg) at 10:20 pm.
Earlier, the May rubber futures contract stagnated at 212.10, after trading on Tuesday (26/12) ended up with a gain of 1.78% or 3.70 points.
According to Kazuhiko Saito, an analyst at Fujitomi brokerage firm in Tokyo, the continued strengthening of rubber prices is supported by the surge in crude oil prices on Tuesday.
On Tuesday, West Texas Intermediate oil futures for February delivery closed up 1.50 points at US $ 59.97 per barrel, the highest level since June 2015.
Brent oil for February delivery ended up 2.71% or 1.77 points at $ 67.02 a barrel on the London-based ICE Futures Europe exchange, its highest level since May 2015.
"Rubber prices are also getting support from the steps of a number of producing countries to cut supply," added Saito, as quoted by Bloomberg.
Three rubber-producing countries agreed to cut rubber exports by 350,000 tons by March 2018.
Indonesia, Malaysia and Thailand joined the International Tripartite Rubber Council (ITRC), agreed to re-implement the Agreed Export Tonnage Scheme or rubber export restrictions in December to March 2018 to raise the price of the commodity.
Director of the APEC and International Trade Organization Deny Wachyudi Kurnia explained that in the export restriction, Indonesia received 95,190 tons. Meanwhile, Thailand 234,810 tons and Malaysia 20,000 tons.
He revealed the agreement was generated in an ITRC meeting held in Bangkok, Thailand, Friday (22/12). It said it would ask Vietnam's support as another big rubber producer who just joined the ITRC some time ago.
Meanwhile, Vietnam's Ministry of Agriculture and Rural Development today reported that export of Vietnam rubber in 2017 is estimated at 1.39 million tons, up 11% y-o-y, while rubber exports in November reached 145,000 tons from an earlier estimate of 143,000 tons.
Supporting the rubber, the yen appreciated a thin 0.03% or 0.03 point drop to 113.26 per US dollar at 10:26 am on Tuesday (26/12) ending up just 0.01% at 113 , 23.
Monday, December 25, 2017
TOCOM rises after top producers agree to cut exports until March
Benchmark Tokyo rubber
futures rose on Monday, helped by news that top producing countries have agreed
to slash exports by up to 350,000 tonnes until March next year, but trades were
thin due to the holiday season.
A group of three of the world’s top natural
rubber producers will cut exports by up to 350,000 tonnes in total from now
until March, the Thai agriculture ministry said on Friday, in a bid to address
declining global prices.
“The news lent support to the market,” said Satoru
Yoshida, a commodity analyst with Rakuten Securities.
“But many market
participants are done for this year and I expect to see narrow-ranged trade for
the rest of the week,” he added.
The Tokyo Commodity Exchange (TOCOM) rubber
contract for new June delivery finished at 208.4 yen ($1.84) per kg, up
4.2 yen from an opening price of 204.2 yen.The most-active rubber contract on
the Shanghai futures exchange for May delivery fell 65 yuan to finish at 14,030
yuan ($2,146) per tonne.
Financial markets in the United States, U.K., Germany,
France, Brazil, Hong Kong, Singapore, South Korea, India and Australia were
closed on Monday for the Christmas holiday.
Friday, December 22, 2017
TOCOM extends decline; producers to curb exports
Benchmark Tokyo rubber futures extended declines on Friday and posted their first weekly fall in five weeks amid continued worries about demand, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, also came under pressure from a sharp drop in the Shanghai market.
A group of three of the world's top natural rubber producers will cut exports by up to 350,000 tonnes in total from now until March next year, the Thai agriculture ministry said late on Friday, in a bid to address declining global prices.
The Tokyo Commodity Exchange rubber contract for May delivery finished 3 yen lower at 203.4 yen (US$1.79) per kg, after hitting 202 yen earlier, the lowest since Dec. 12.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 425 yuan, or 3%, to finish at 14,005 yuan (US$2,130) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 3.9% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 142.50 US cents per kg, down 2.1 cents.
Afraid of Abundant Supply, Rubber Price Depressed on Second Day
The movement of rubber prices ended in the red zone on the second day of consecutive trading on Friday (22/12/2017), amid concerns over abundant supply.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.45% or 3 points at 203.40 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.10% rise or 0.20 point at 206.60, after trading on Thursday (21/12/2017) ended down 0.72% or 1.50 points at 206.40 position .
"The abundance of supply from Thailand will keep pressing the rubber market," said Kazuhiko Saito, a Fujitomi broker analyst in Tokyo, as quoted by Bloomberg.
In its report, The Rubber Economist estimates that global natural rubber production will exceed consumption by 169,000 tonnes next year and by 150,000 tonnes by 2019.
Production in 2017 is expected to rise 6% to 13.2 million tonnes, while consumption rose 3.5% to 13.03 million tonnes. The increase in production in 2017 looks bigger than expected in Malaysia, India, and smaller-scale producer countries.
Meanwhile, global stocks are expected to rise to 3.4 million tonnes by the end of 2019.
On the other hand, the observed yen depreciated 0.03%, or 0.03 points, to 113.36 per dollar at 13.50 Western Indonesia time on Thursday after ending up 0.06% at 113, 33.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.45% or 3 points at 203.40 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.10% rise or 0.20 point at 206.60, after trading on Thursday (21/12/2017) ended down 0.72% or 1.50 points at 206.40 position .
"The abundance of supply from Thailand will keep pressing the rubber market," said Kazuhiko Saito, a Fujitomi broker analyst in Tokyo, as quoted by Bloomberg.
In its report, The Rubber Economist estimates that global natural rubber production will exceed consumption by 169,000 tonnes next year and by 150,000 tonnes by 2019.
Production in 2017 is expected to rise 6% to 13.2 million tonnes, while consumption rose 3.5% to 13.03 million tonnes. The increase in production in 2017 looks bigger than expected in Malaysia, India, and smaller-scale producer countries.
Meanwhile, global stocks are expected to rise to 3.4 million tonnes by the end of 2019.
On the other hand, the observed yen depreciated 0.03%, or 0.03 points, to 113.36 per dollar at 13.50 Western Indonesia time on Thursday after ending up 0.06% at 113, 33.
TOP NATURAL RUBBER PRODUCERS TO CURB EXPORTS BY UP TO 350,000 T UNTIL END-MARCH 2018
A group of three of the world's top natural rubber producers will cut exports by up to 350,000 tonnes in total from now until March next year, the Thai agriculture ministry said on Friday, in a bid to address declining global prices. The agreed export tonnage measure was announced following a meeting on Friday of the International Tripartite Rubber Council (ITRC), which consists of Thailand, Indonesia, and Malaysia. The three produce nearly 70 percent of the world's natural rubber. "The fifth Agreed Export Tonnage Scheme is one of the key measures the government will use to address the volatility of rubber prices," Deputy Minister of Agriculture Luck Vajananawat told reporters on Friday.
Thursday, December 21, 2017
Demand in China Looms, Rubber Price Down
The movement of rubber prices ended in the red zone in trading today, Thursday (21/12/2017), amid concerns about slow demand.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.72% or 1.50 points at 206.40 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.19% rise or 0.40 point at 208.30, after trading on Wednesday (20/12/2017) ended up 0.43% or 0.90 points at 207.90 .
According to Gu Jiong, commodity broker analyst Yutaka Shoji in Tokyo, rubber prices weighed on continued concerns over slow demand in China as well as inadequate details on export restrictions.
Reported by Bloomberg, The Rubber Economist in its report estimates that global natural rubber production will exceed consumption by 169,000 tons next year and by 150,000 tons by 2019.
Meanwhile, production in 2017 is expected to rise 6% to 13.2 million tons, while consumption rose 3.5% to 13.03 million tons.
On the other hand, the Rubber Authority of Thailand states that Thailand, Indonesia and Malaysia are planning to limit rubber exports to contain supply and adjust global demand.
The three countries will meet in the near future to discuss the details of the steps for the effort. The meeting, which was due to take place on December 15, was postponed due to a cabinet reshuffle in Thailand.
Supporting rubber, the yen appreciated a thin 0.02% or 0.02 point drop to 113.42 per dollar at 13:58 pm, after Wednesday ended 0.45 per cent at 113, 40.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.72% or 1.50 points at 206.40 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.19% rise or 0.40 point at 208.30, after trading on Wednesday (20/12/2017) ended up 0.43% or 0.90 points at 207.90 .
According to Gu Jiong, commodity broker analyst Yutaka Shoji in Tokyo, rubber prices weighed on continued concerns over slow demand in China as well as inadequate details on export restrictions.
Reported by Bloomberg, The Rubber Economist in its report estimates that global natural rubber production will exceed consumption by 169,000 tons next year and by 150,000 tons by 2019.
Meanwhile, production in 2017 is expected to rise 6% to 13.2 million tons, while consumption rose 3.5% to 13.03 million tons.
On the other hand, the Rubber Authority of Thailand states that Thailand, Indonesia and Malaysia are planning to limit rubber exports to contain supply and adjust global demand.
The three countries will meet in the near future to discuss the details of the steps for the effort. The meeting, which was due to take place on December 15, was postponed due to a cabinet reshuffle in Thailand.
Supporting rubber, the yen appreciated a thin 0.02% or 0.02 point drop to 113.42 per dollar at 13:58 pm, after Wednesday ended 0.45 per cent at 113, 40.
TOCOM ends down 0.7% on weak Shanghai
Benchmark Tokyo rubber futures ended down 0.7% on Thursday, coming under pressure from a decline in Shanghai futures, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, ended about 2% off a near two-week high hit on Monday amid lingering worries over global demand.
Thailand's customs-cleared rubber exports surged 61% in November, commerce ministry data showed on Thursday.
The Tokyo Commodity Exchange rubber contract for May delivery finished 1.5 yen lower at 206.4 yen (US$1.82) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 95 yuan to finish at 14,365 yuan (US$2,186) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 144.10 US cents per kg, down 1.3 cent.
Wednesday, December 20, 2017
TOCOM ends higher on weak yen, gains in Shanghai
Benchmark Tokyo rubber futures ended up 0.4% on Wednesday, supported by a weaker yen against the dollar and slight gains in Shanghai futures.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, are trading near a two-week high hit on Monday, up around 5% from late last month, when Asia's top rubber producers agreed to cut exports of natural rubber in a bid to address declining global prices.
The Tokyo Commodity Exchange rubber contract for May delivery finished 0.9 yen higher at 207.9 yen (US$1.84) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 60 yuan to finish at 14,470 yuan (US$2,198) per tonne.
The dollar was supported on Wednesday by expectations that the Trump administration's tax reforms would pass through Congress. A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 144.50 US cents per kg, down 0.7 cent.
Monday, December 18, 2017
TOCOM ends up 2.1% on firm Shanghai, weaker yen
Benchmark Tokyo rubber futures ended up 2.1% on Monday, after hitting a near two-week high in the morning, helped by firm Shanghai futures and a weaker yen against the dollar, brokers said.
The dollar held modest gains against its peers, having received a lift after US tax reform efforts moved another step closer to ratification over the weekend.
A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
The Tokyo Commodity Exchange rubber contract for May delivery finished 4.2 yen higher at 209 yen (US$1.86) per kg after earlier hitting its highest since Dec. 5 at 210.3 yen.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 195 yuan to finish at 14,560 yuan (US$2,202) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 145.10 US cents per kg, up 0.1 cent.
Sunday, December 17, 2017
NR rebound on trading date 18 DEC 2016
Rubber prices rose nearly two percent in trading this morning, Monday (18/12/2017), among which encouraged Thai efforts to boost the price of this commodity.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.76 percent or 3.60 points to 208.40 yen per kilogram (kg) at 10:20 pm.
Earlier, the May contract rubber price opened up 0.24% or 0.50 points at 205.30, after trading on Friday (15/12/2017) ended down 0.24% or 0.50 points at 204.80 yen per kg.
According to Felix Yeo, Director of RCMA Asia Pte. in Singapore, Thailand's move to boost prices boosted the rubber market in Tocom this morning.
Reported by Bloomberg, Thailand's natural rubber policy committee approved the implementation of a number of measures to help rubber farmers.
"The government will provide 20 billion baht in loans as working capital for producers to reduce rubber supplies by 350,000 tons," the Thai government said in a statement, as quoted by Bloomberg.
The government will also provide loans worth 15 billion baht to boost rubber production that will help drive more domestic consumption.
Not only the efforts of Thailand, rubber prices also get a boost from the strengthening of China's industrial metal.
The price of iron ore for May contracts reportedly rose 3.7% to 527 yuan / ton on the Dalian Commodities Exchange at 10:06 am EDT, preparing for the highest closing level in almost two weeks.
"The domestic ore market is stabilizing as tightening supplies of materials have pushed prices in the short term," said Shanghai Cifco Futures.
Supporting rubber, the yen advanced yen depreciated 0.06% or 0.07 points to 112.67 per dollar at 10:26 Western Indonesia Time, after Friday ended 15.19% at 112, 60.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.76 percent or 3.60 points to 208.40 yen per kilogram (kg) at 10:20 pm.
Earlier, the May contract rubber price opened up 0.24% or 0.50 points at 205.30, after trading on Friday (15/12/2017) ended down 0.24% or 0.50 points at 204.80 yen per kg.
According to Felix Yeo, Director of RCMA Asia Pte. in Singapore, Thailand's move to boost prices boosted the rubber market in Tocom this morning.
Reported by Bloomberg, Thailand's natural rubber policy committee approved the implementation of a number of measures to help rubber farmers.
"The government will provide 20 billion baht in loans as working capital for producers to reduce rubber supplies by 350,000 tons," the Thai government said in a statement, as quoted by Bloomberg.
The government will also provide loans worth 15 billion baht to boost rubber production that will help drive more domestic consumption.
Not only the efforts of Thailand, rubber prices also get a boost from the strengthening of China's industrial metal.
The price of iron ore for May contracts reportedly rose 3.7% to 527 yuan / ton on the Dalian Commodities Exchange at 10:06 am EDT, preparing for the highest closing level in almost two weeks.
"The domestic ore market is stabilizing as tightening supplies of materials have pushed prices in the short term," said Shanghai Cifco Futures.
Supporting rubber, the yen advanced yen depreciated 0.06% or 0.07 points to 112.67 per dollar at 10:26 Western Indonesia Time, after Friday ended 15.19% at 112, 60.
Friday, December 15, 2017
Stocks in Japan Rise, Rubber Price Ends Rally
Rally of rubber prices ended in trading today, Friday (15/12/2017), following reports of raw rubber stocks rise in Japan.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.24% or 0.50 points at 204.80 yen per kilogram (kg).
Earlier, the May contract price opened down 0.15% or 0.30 points at 205, after trading on Thursday (14/12/2017) ended up 0.54% or 1.10 points at 205.30 yen per kg .
Throughout today's trading, rubber is moving in the range of 204,50-206,30. Today's rubber decline ended the rally for three consecutive trading days earlier.
According to Takaki Shigemoto, an analyst at research company JSC in Tokyo, rubber prices today affected the increase in inventory in Japan.
"An increase in stock in Japan shows that supply from Southeast Asian producers is abundant," Shigemoto said, as quoted by Bloomberg.
Japanese Rubber Trade Association data showed that the amount of raw rubber stock in warehouses increased by 9.6% compared to the previous period to 9,303 metric tons on Nov 30.
In addition to pressing the rubber, the yen continued to appreciate 0.14% or 0.16 points to 112.23 per US dollar at 13.45 Western Indonesia Time, after Thursday (14/12) ended up appreciating 0.13% at 112, 39.
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.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.24% or 0.50 points at 204.80 yen per kilogram (kg).
Earlier, the May contract price opened down 0.15% or 0.30 points at 205, after trading on Thursday (14/12/2017) ended up 0.54% or 1.10 points at 205.30 yen per kg .
Throughout today's trading, rubber is moving in the range of 204,50-206,30. Today's rubber decline ended the rally for three consecutive trading days earlier.
According to Takaki Shigemoto, an analyst at research company JSC in Tokyo, rubber prices today affected the increase in inventory in Japan.
"An increase in stock in Japan shows that supply from Southeast Asian producers is abundant," Shigemoto said, as quoted by Bloomberg.
Japanese Rubber Trade Association data showed that the amount of raw rubber stock in warehouses increased by 9.6% compared to the previous period to 9,303 metric tons on Nov 30.
In addition to pressing the rubber, the yen continued to appreciate 0.14% or 0.16 points to 112.23 per US dollar at 13.45 Western Indonesia Time, after Thursday (14/12) ended up appreciating 0.13% at 112, 39.
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.
TOCOM falls as strong yen offsets Shanghai gains
Benchmark Tokyo rubber futures ended down 0.2% on Friday, as a stronger yen offset firm Shanghai futures, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, remained well below a two-month high of 211.2 yen hit last week amid continued worries over global demand.
The dollar was on the defensive on Friday after wrangling over a bill to change the US tax code dented confidence. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
The Tokyo Commodity Exchange rubber contract for May delivery finished 0.5 yen lower at 204.8 yen (US$1.83) per kg, falling from a one-week high hit a day earlier, and eking out the fourth straight weekly gain, of 0.3%.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 3.5% from last Friday, the exchange said on Friday.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 175 yuan to finish at 14,415 yuan (US$2,182) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 144.70 US cents per kg, up 0.1 cent.
Thursday, December 14, 2017
Rubber Price Continues Rally of Strengthening on Third Day
Rubber price continued to strengthen at the end of trading the third day in a row on Thursday (14/12/2017).
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.54% or 1.10 points at 205.30 yen per kilogram (kg).
Earlier, the May contract price opened down 0.15% or 0.30 points at 203.90, after trading Wednesday (13/12/2017) ended up 0.1% or 0.2 point at 204.2 yen per kg.
Kazuhiko Saito, commodities brokerage analyst Fujitomi said there was growing speculation that shipments from Thailand would decline following government efforts to suppress exports.
"In addition, there is a decrease in seasonal production that occurs," said Saito, as quoted by Bloomberg.
Earlier, Agriculture and Cooperative Minister Grisada Boonrach said the government was balancing to cut rubber production and boost local demand to shore up prices.
In line with rubber, the Japanese yen exchange rate was down 0.17% or 0.19 points to 112.73 yen per US dollar at 14.26 pm.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.54% or 1.10 points at 205.30 yen per kilogram (kg).
Earlier, the May contract price opened down 0.15% or 0.30 points at 203.90, after trading Wednesday (13/12/2017) ended up 0.1% or 0.2 point at 204.2 yen per kg.
Kazuhiko Saito, commodities brokerage analyst Fujitomi said there was growing speculation that shipments from Thailand would decline following government efforts to suppress exports.
"In addition, there is a decrease in seasonal production that occurs," said Saito, as quoted by Bloomberg.
Earlier, Agriculture and Cooperative Minister Grisada Boonrach said the government was balancing to cut rubber production and boost local demand to shore up prices.
In line with rubber, the Japanese yen exchange rate was down 0.17% or 0.19 points to 112.73 yen per US dollar at 14.26 pm.
Wednesday, December 13, 2017
TOCOM ends little changed in line with Shanghai
Benchmark Tokyo rubber futures ended little changed on Wednesday, in line with Shanghai futures, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have been down in the doldrums amid worries over demand after hitting a more-than-two-month high of 211.2 yen last week following a fire at a warehouse in China.
The Tokyo Commodity Exchange rubber contract for May delivery finished 0.2 yen higher at 204.2 yen (US$1.80) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 35 yuan to finish at 14,080 yuan (US$2,127) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 141.90 US cents per kg, down 1.4 cent.
Malaysia Natural rubber output up 28.5% in October 2017
Malaysia's natural rubber (NR) production rose 28.5% to 67,403 tonnes in October 2017 from 52,472 tonnes in September, according to the Department of Statistics.
In a statement today, the department said the smallholding sector was the main contributor to the NR production, accounting for 90%.
Year-on-year comparisons also showed an increase of 8.3% compared to October 2016, it said.
It said the average monthly price of latex concentrate and Standard Malaysian Rubber 20 in October 2017 were 489.36 sen per
kilogramme (kg) and 601.21 sen per kg, decreased by 11.4% and 9.0% respectively from September 2017.
kilogramme (kg) and 601.21 sen per kg, decreased by 11.4% and 9.0% respectively from September 2017.
Malaysia's NR exports grew 4.5% to 47,162 tonnes in October compared with September.
The five main destinations of the NR exports were China, Germany, US, Iran and Republic of Korea.
Domestic consumption of NR increased by 2,092 tonnes or 5.2% within the same period, while the rubber gloves industry remained the main NR domestic consumer at 72.9%.
The department said the level of NR stocks at-October increased by 6.5% or 12,564 tonnes to 206,593 tonnes compared with the previous month.
Sentiments Influence Rubber Price Fluctuations Today
Rubber prices fluctuated in trading today, Wednesday (13/12/2017), influenced by a number of sentiments.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 0.59% or 1.20 points to 202.80 yen per kilogram (kg) at 1033 WIB.
Earlier, the May rubber futures contract opened with a weakening of 0.05% or 0.1 point at 203.90, and gained as much as 1.08% or 2.20 points to 206.20 yen per kg.
As for the trade on Tuesday (12/12/2017), rubber prices closed up 0.49% or 1 point at the level of 204 yen per kg.
According to Naohiro Niimura, a partner at Market Risk Advisory, rubber prices are weighed by a stronger yen, a weaker Nikkei index, and a weaker crude oil price on Tuesday.
"However, the weakening of rubber prices is limited by the efforts of the producer countries to limit supply," said Niimura, as quoted by Bloomberg.
Known, Indonesia, Malaysia and Thailand are rumored to be reimposing the rubber export restriction scheme in December 2017 to lift the price of the commodity in the global market.
The three major rubber producing countries that are members of International Tripartite Rubber Council (ITRC) consider the impact of the world rubber price decline, especially for the welfare of small farmers.
Meanwhile, the Japanese yen rose 0.23% or 0.26 points to 113.29 per US dollar at 11:05 pm.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 0.59% or 1.20 points to 202.80 yen per kilogram (kg) at 1033 WIB.
Earlier, the May rubber futures contract opened with a weakening of 0.05% or 0.1 point at 203.90, and gained as much as 1.08% or 2.20 points to 206.20 yen per kg.
As for the trade on Tuesday (12/12/2017), rubber prices closed up 0.49% or 1 point at the level of 204 yen per kg.
According to Naohiro Niimura, a partner at Market Risk Advisory, rubber prices are weighed by a stronger yen, a weaker Nikkei index, and a weaker crude oil price on Tuesday.
"However, the weakening of rubber prices is limited by the efforts of the producer countries to limit supply," said Niimura, as quoted by Bloomberg.
Known, Indonesia, Malaysia and Thailand are rumored to be reimposing the rubber export restriction scheme in December 2017 to lift the price of the commodity in the global market.
The three major rubber producing countries that are members of International Tripartite Rubber Council (ITRC) consider the impact of the world rubber price decline, especially for the welfare of small farmers.
Meanwhile, the Japanese yen rose 0.23% or 0.26 points to 113.29 per US dollar at 11:05 pm.
Tuesday, December 12, 2017
TOCOM ends higher on Shanghai gain, firm oil prices
Benchmark Tokyo rubber futures gained on Tuesday after two days of decline, buoyed by Shanghai futures and firm oil prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, had fallen amid worries over demand after hitting a more than two-month high of 211.2 yen a week earlier following a fire outbreak at a warehouse in China.
The Tokyo Commodity Exchange rubber contract for May delivery finished 1 yen higher at 204 yen (US$1.80) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 90 yuan to finish at 14,165 yuan (US$2,140) per tonne.
Brent oil prices jumped 1.5% on Tuesday to their highest since mid-2015, after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market already tightening due to OPEC-led production cuts.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 142.40 US cents per kg, down 0.7 cent.
Monday, December 11, 2017
Oil Strong, Rubber Price Rebound This Morning
Rubber prices managed to rebound in trading this morning, Tuesday (12/12/2017), in line with the strengthening of crude oil prices.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.39% or 0.80 points to 203.80 yen per kg at 10:48 pm.
Earlier, the May rubber futures contract opened with a 0.10% rise or 0.20 point at 203.20, after trading Monday (11/12/2017) ended down 0.54% or 1.10 points at 203 yen kg.
In fact, the price of rubber had moved in the negative zone with the weakening 0.3% to the level of 202.50 yen per kg at 11:51 am local time.
According to Kazuhiko Saito, an analyst at Fujitomi, continuing concerns about sluggish demand in China weighed on rubber sentiment, with some investors looking forward to more details on a plan of restrictions by major exporters.
Indonesia, Malaysia and Thailand are rumored to be reimposing the rubber export restriction scheme by December 2017 to lift the price of the commodity in the global market.
The three major rubber producing countries that are members of International Tripartite Rubber Council (ITRC) consider the impact of the world rubber price decline, especially for the welfare of small farmers.
In line with rubber, West Texas Intermediate (WTI) oil prices for January delivery were up 0.52% or 0.30 points to US $ 58.29 per barrel at 10:44 pm.
The price of Brent oil delivery in February 2018 rose 0.97% or 0.62 points to as low as US $ 65.32 per barrel.
The Forties Pipeline System activity, one of the most important oil channels in the world, has to be stopped completely after a crack has been discovered. According to a spokesman for the pipeline operator, Ineos, the repairs will take about two weeks.
The announcement boosted prices that have largely been muted in the past week after a major OPEC deal to extend production restrictions by the end of 2018.
Rubber prices are able to strengthen when the performance of the Japanese yen appreciates. The yen appreciated by 0.06% or 0.07 point to 113.50 per US dollar at 10:53 pm, after Monday (11/12) ended down 0.08% at 113.57.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.39% or 0.80 points to 203.80 yen per kg at 10:48 pm.
Earlier, the May rubber futures contract opened with a 0.10% rise or 0.20 point at 203.20, after trading Monday (11/12/2017) ended down 0.54% or 1.10 points at 203 yen kg.
In fact, the price of rubber had moved in the negative zone with the weakening 0.3% to the level of 202.50 yen per kg at 11:51 am local time.
According to Kazuhiko Saito, an analyst at Fujitomi, continuing concerns about sluggish demand in China weighed on rubber sentiment, with some investors looking forward to more details on a plan of restrictions by major exporters.
Indonesia, Malaysia and Thailand are rumored to be reimposing the rubber export restriction scheme by December 2017 to lift the price of the commodity in the global market.
The three major rubber producing countries that are members of International Tripartite Rubber Council (ITRC) consider the impact of the world rubber price decline, especially for the welfare of small farmers.
In line with rubber, West Texas Intermediate (WTI) oil prices for January delivery were up 0.52% or 0.30 points to US $ 58.29 per barrel at 10:44 pm.
The price of Brent oil delivery in February 2018 rose 0.97% or 0.62 points to as low as US $ 65.32 per barrel.
The Forties Pipeline System activity, one of the most important oil channels in the world, has to be stopped completely after a crack has been discovered. According to a spokesman for the pipeline operator, Ineos, the repairs will take about two weeks.
The announcement boosted prices that have largely been muted in the past week after a major OPEC deal to extend production restrictions by the end of 2018.
Rubber prices are able to strengthen when the performance of the Japanese yen appreciates. The yen appreciated by 0.06% or 0.07 point to 113.50 per US dollar at 10:53 pm, after Monday (11/12) ended down 0.08% at 113.57.
TOCOM erases early gains amid demand concerns
Benchmark Tokyo rubber futures ended down 0.5% on Monday, erasing early gains in line with Shanghai futures amid concerns about slowing growth in consumption by top consumer China, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have fallen from a more than two-month high hit last Tuesday. The market received little support from the Thailand government's plan to increase rubber purchases to help boost prices.
The Tokyo Commodity Exchange rubber contract for May delivery finished 1.1 yen lower at 203 yen (US$1.79) per kg after touching 205.8 yen, the highest since Dec 7, earlier in the session.
Crude rubber inventories at Japanese ports stood at 8,492 tonnes as of Nov 20, up 19.2% from the last inventory date, data from the Rubber Trade Association of Japan showed late on Friday.
China's vehicle sales in November rose 0.7% from a year earlier to 2.96 million vehicles, marking a sixth consecutive month of gains, an industry association said on Monday.
The most-active rubber contract on the Shanghai futures exchange for May delivery finished unchanged at 14,020 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 141.70 US cents per kg, down 1.1 cents.
Wednesday, December 6, 2017
TOCOM snaps 3-session rally as investors book profit
Benchmark Tokyo rubber ended a three-session rally on Wednesday, declining from a two-month high hit the previous day, on profit booking and a plunge in Shanghai futures.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 4.2 yen or 2.0% lower at 205.2 yen (US$1.83) per kg. On Tuesday, it hit its highest since Sept 28 at 211.1 yen.
"Investors took profits after the benchmark reached a technical milestone," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
Tuesday's high represented a half-way recovery from the November low of 187.8 yen to the September high of 234.7 yen, he added.
"But it is not clear whether the market will be headed lower or higher from now," he said.
On the downside, the most-active rubber contract on the Shanghai Futures Exchange for May delivery plunged 440 yuan or 3% to finish at 14,330 yuan (US$2,167) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 145.4 U.S. cents per kg, down 1.0 cent.
Tuesday, December 5, 2017
Oil Falls, Rubber Prices Fall More Than 2%
Rubber prices plunged more than two percent in trading this morning, Wednesday (6/12/2017), in line with the weakening of crude oil prices.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), tumbled 2.10% or 4.40 points to 205 yen per kilogram (kg) at 10:14 pm.
Earlier, the May contract price opened down 0.19% at 209 level after trading on Tuesday (05/12/2017) was able to end up in the green zone despite a rise of only 0.05% or 0.10 points to the level of 209.40 yen per kg.
According to Gu Jiong, an analyst at commodity trading company Yutaka Shoji, rubber prices are affected by crude oil prices, prompting investors to sell rubber.
"In addition, investors are looking at the strengthening Japanese yen currency," he said, as quoted by Bloomberg.
The price of West Texas Intermediate (WTI) oil for January delivery was down 0.42% or 0.24 points to US $ 57.30 per barrel at 10:10 pm.
Brent oil futures for February delivery fell 0.38 percent, or 0.24 points, to as low as 62.62 per barrel on the London-based ICE Futures Europe exchange.
Oil prices slipped into the red zone in morning trade following an industry report showing a surge in US gasoline inventories. The increase also overshadowed expectations of shrinking US crude inventories.
The American Petroleum Institute (API) reported gasoline stockpiles in the US jumped 9.2 million barrels last week. This figure will be the biggest increase since January 2016 if government data released Wednesday shows the same increase.
Meanwhile, the yen appreciated 0.29% or 0.33 points to 112.27 per US dollar at 10:20 pm, after on Tuesday (5/12) ended down 0.17% at 112.60.
RUBBER-TOCOM steadies after hitting 2-month high
Benchmark Tokyo rubber futures steadied on Tuesday, after earlier hitting their highest in more than two months, as investors took profits and as a drop in Shanghai futures and weaker oil prices weighed.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 0.1 yen higher at 209.4 yen ($1.86) per kg. It touched the highest since Sept. 28 of 211.1 yen earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 80 yuan, or 0.5 percent, to finish at 14,715 yuan ($2,225) per tonne. It was still near a two-month high hit in the previous day amid concerns over the recent fire at a rubber warehouse in China.
Weaker oil prices also added to the pressure, dealers said.
Oil prices fell on Tuesday ahead of U.S. crude inventories data, as the market weighed the impact of rising U.S. crude output versus last week’s deal between OPEC and other crude producers to extend output curbs.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 145.7 U.S. cents per kg, down 4.2 cent.
Monday, December 4, 2017
Rubber Price Moves Higher On The 3rd Day
The strengthening of rubber prices continues in the third day of consecutive trading on Tuesday (05/12/2017), amid concerns over the outlook for supply of this commodity.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.76% or 1.60 points to 210.90 yen per kilogram (kg) at 1036 GMT.
Earlier, the May contract rubber price opened with a 0.62% rise at 210.60 after trading on Monday (4/12/2017) ended up 2.85% or 5.80 points at 209.30 yen per kg.
According to Gu Jiong, an analyst at commodity trading company Yutaka Shoji, rubber prices are buoyed by concerns about inventories amidst export cuts by exporters.
"In addition to flooding in Thailand as well as last weekend's fires in the rubber warehouse in Shanghai," Gu Jiong said, as quoted by Bloomberg.
Indonesia, Malaysia and Thailand are rumored to be reimposing the rubber export restriction scheme in December 2017 to lift the price of the commodity in the global market.
The three major rubber producing countries that are members of International Tripartite Rubber Council (ITRC) consider the impact of the world rubber price decline, especially for the welfare of small farmers.
Therefore, for the fifth time the Agreed Export Tonnage Scheme (AETS) scheme or export trimming will be implemented in December 2017.
As is known, ITRC consists of three major rubber producing countries, namely Thailand, Indonesia, and Malaysia. Thailand is the largest rubber producer in the world with a total production of about 4.1 million tons.
Meanwhile, Indonesia is in second position with output of 3.1 million tons, followed by Malaysia in third position with 720,000 tons per year production.
Also boosting the yen, the yen was down 0.13% or 0.15 points to 112.56 per dollar at 1041 GMT, after Monday (4/12) ended up depreciating 0.21% at 112.41 .
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.76% or 1.60 points to 210.90 yen per kilogram (kg) at 1036 GMT.
Earlier, the May contract rubber price opened with a 0.62% rise at 210.60 after trading on Monday (4/12/2017) ended up 2.85% or 5.80 points at 209.30 yen per kg.
According to Gu Jiong, an analyst at commodity trading company Yutaka Shoji, rubber prices are buoyed by concerns about inventories amidst export cuts by exporters.
"In addition to flooding in Thailand as well as last weekend's fires in the rubber warehouse in Shanghai," Gu Jiong said, as quoted by Bloomberg.
Indonesia, Malaysia and Thailand are rumored to be reimposing the rubber export restriction scheme in December 2017 to lift the price of the commodity in the global market.
The three major rubber producing countries that are members of International Tripartite Rubber Council (ITRC) consider the impact of the world rubber price decline, especially for the welfare of small farmers.
Therefore, for the fifth time the Agreed Export Tonnage Scheme (AETS) scheme or export trimming will be implemented in December 2017.
As is known, ITRC consists of three major rubber producing countries, namely Thailand, Indonesia, and Malaysia. Thailand is the largest rubber producer in the world with a total production of about 4.1 million tons.
Meanwhile, Indonesia is in second position with output of 3.1 million tons, followed by Malaysia in third position with 720,000 tons per year production.
Also boosting the yen, the yen was down 0.13% or 0.15 points to 112.56 per dollar at 1041 GMT, after Monday (4/12) ended up depreciating 0.21% at 112.41 .
TOCOM hits 2-month high on Shanghai rally after warehouse fire
Benchmark Tokyo rubber futures surged to their highest in more than two months on Monday, buoyed by a rally in Shanghai futures after a fire outbreak at a warehouse in China last week, while a softer yen against the U.S. dollar also lent support.
A warehouse storing rubber products in a logistics park in China's eastern Shandong province caught fire on Friday, damaging 36,000 tonnes of rubber inventories, according to the Shanghai Futures Exchange.
That represents about 11% of rubber inventories in warehouses monitored by the Shanghai Futures Exchange.
"The fire prompted fresh buying in Shanghai and Tokyo," said Hiroyuki Kikukawa, general manager of research, Nissan Securities.
"The fire prompted fresh buying in Shanghai and Tokyo," said Hiroyuki Kikukawa, general manager of research, Nissan Securities.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 5.8 yen higher or 2.9% at 209.3 yen (US$1.85) per kg. Earlier in the session, it touched 210.3 yen, the highest since Sept 28.
The most active rubber contract on the Shanghai futures exchange for May delivery soared 610 yuan to finish at 14,925 yuan (US$2,255) per tonne, after reaching the highest since Sept 21 of 15,020 yuan.
"Floods in southern Thailand, which may affect rubber output or shipment and the recent news of Asian producers curbing rubber export were also behind the market rise," Kikukawa said.
Asia's top rubber producers have agreed to cut exports of natural rubber from the middle of December, the International Rubber Consortium (IRCo) said late November, in a bid to address declining global prices.
Also on the upside, the dollar was broadly higher on Monday, reaching a 2-1/2-week peak against the yen, lifted after the U.S. Senate approved a tax overhaul at the weekend.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
"I think rubber prices have hit a bottom and the TOCOM is expected to climb toward 220 yen," he said.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 148.7 U.S. cents per kg, up 3.2 cents.
Sunday, December 3, 2017
RUBBER EXPORTERS RESTRICT EXPORT BY DEC 2017
Rubber producers support the agreement of the three major commodity-producing countries to return to the Agreed Export Tonnage Scheme.
Chairman of the Indonesian Rubber Producers Association (Gapkindo) Moenardji Soedargo said entrepreneurs fully support the export cuts that will be taken by Indonesia, Malaysia and Thailand in December 2017. According to him, the policy is needed to restore the price of rubber in line.
"Gapkindo always support the same action in the form of export cuts when the price is out of the rail and dangerous," he told Bisnis on Monday (04/12/2017).
Moenardji explained that export cuts have been conducted four times by three producer countries that are included in the International Tripartite Rubber Council (ITRC). The move is a short-term solution to bringing back the price of rubber commodities in the global market.
In the near future, he continued, the government in three countries will explain in more detail about the export cuts scheme that will be applied. It concerns the total amount of export cuts and the time period for the implementation of the policy.
Nevertheless, he expressed optimism that export cuts could again boost rubber prices in global markets.
"I think the price could hold close to 200 yen per kilogram in a few months," he explained.
As is known, Gapkindo installed rubber export target of 2.7 million tons in 2017 or up from the realization in 2016 of 2.6 million tons. Meanwhile, production is targeted to reach 3.2 million tons this year.
Based on Bloomberg data, the price of rubber throughout the year has been steadily declining since reaching its peak at 351.4 yen per kilogram (kg) in February 2017. In early December 2017, prices stood at 203.5 yen / kg.
Chairman of the Indonesian Rubber Producers Association (Gapkindo) Moenardji Soedargo said entrepreneurs fully support the export cuts that will be taken by Indonesia, Malaysia and Thailand in December 2017. According to him, the policy is needed to restore the price of rubber in line.
"Gapkindo always support the same action in the form of export cuts when the price is out of the rail and dangerous," he told Bisnis on Monday (04/12/2017).
Moenardji explained that export cuts have been conducted four times by three producer countries that are included in the International Tripartite Rubber Council (ITRC). The move is a short-term solution to bringing back the price of rubber commodities in the global market.
In the near future, he continued, the government in three countries will explain in more detail about the export cuts scheme that will be applied. It concerns the total amount of export cuts and the time period for the implementation of the policy.
Nevertheless, he expressed optimism that export cuts could again boost rubber prices in global markets.
"I think the price could hold close to 200 yen per kilogram in a few months," he explained.
As is known, Gapkindo installed rubber export target of 2.7 million tons in 2017 or up from the realization in 2016 of 2.6 million tons. Meanwhile, production is targeted to reach 3.2 million tons this year.
Based on Bloomberg data, the price of rubber throughout the year has been steadily declining since reaching its peak at 351.4 yen per kilogram (kg) in February 2017. In early December 2017, prices stood at 203.5 yen / kg.
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