Rubber prices closed lower from one percent in trading this morning, Wednesday (24/1/2018) following high levels of rubber stocks and the strengthening of the yen.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.21% or 2.50 points to 204.10 yen per kilogram (kg).
Earlier June's June rubber open price fell 0.15% or 0.30 point at 206.30 after trading on Tuesday (23/1) ended down 1.24% or 2.60 points at 206.60.
Fujitomi's brokerage analyst in Tokyo, Kazuhiko Saito, said rubber prices weighed on negative sentiment coming from high levels of reserves in both China and Japan.
The rubber stocks monitored by the Shanghai Futures Exchange reported up 2.6% to 415,415 tonnes.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 14.4% to 12,267 tons as of December 31, 2017 compared to levels reached on December 20.
The data includes warehouses in seven Japanese ports namely, Tokyo, Yokohama, Nagoya, Osaka, Kobe, Moji, and Hakata.
"In addition, the weakness in the Nikkei and the continued appreciation of the yen add negative factors to the rubber," added Saito, as quoted by Bloomberg.
The yen exchange rate was up 0.27% or 0.3 points to 110.01 per US dollar at 13.25 WIB, after opening with a thin depreciation of 0.01% or 0.01 point at 110.31.
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