Rubber Prices Closed Stronger 0.66%

Rubber prices could close higher on the second day in a row on Tuesday trading (20/2/2018).

The price of rubber for delivery in July 2018 at Tokyo Commodity Exchange (Tocom), closed up 0.66% or 1.2 points to 183.80 yen per kilogram (kg).

Previously, the July rubber contract price opened with a slight increase of 0.05% or 0.10 points at 182.70 per kg position after successfully rebounding with a gain of 0.61% or 1.10 points at 182.60 yen per kg position trading Monday (19/2).

According to We Tan, marketing manager of Welcome Trading company in Singapore, rubber prices got a positive boost from crude oil price increase.

WTI oil price contract in March 2018 today was followed up by 1.07% or 0.66 points to US $ 62.34 per barrel at 13:53 pm.

Crude oil prices rose after some of the world's biggest oil producers signaled further cooperation to tighten supplies by year's end.

Supporting the rubber, the yen continued to weaken 0.3%, or 0.32 points, to 106.91 per dollar at 14.03 pm on Monday (19/2) ending down 0.36% at 106.59 .

"Nevertheless, the strengthening of rubber is limited by concerns surrounding high reserve levels following the weakening of the Nikkei index," Tan added, as quoted by Bloomberg.

China's rubber reserves monitored by the Shanghai Futures Exchange increased 0.5% last week to 434,330 tons, the 12th consecutive weekly rise.

Meanwhile, Japan's Nikkei 225 index today closed down 1.01% or 224.11 points to 21,925.10.