Rubber price movements ended lower in trading today, Wednesday (2/5/2018), weighed by a number of factors, including concerns about higher supply.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.47% or 0.90 points at 192 yen per kilogram (kg).
Earlier this morning, rubber opened in the red zone by 0.21% or 0.40 points down at 192.50, after posting a rebound and ending up sharply 3.93% at 192.90 points on Tuesday ).
According to Takaki Shigemoto, an analyst at research firm JSC in Tokyo, when the low production season in Thailand will end this month, there are concerns about rising supplies weighing on the rubber market.
"[In addition] investor interest for rubber futures has declined as the oil rally stalled, undermining speculation of rising synthetic rubber prices," Shigemoto added, as quoted by Bloomberg.
The West Texas Intermediate (WTI) oil price for June delivery ended down 1.93% at $ 67.25 a barrel on the New York Mercantile Exchange, the lowest in two weeks on Tuesday.
Also weighing on the rubber, the yen today tracked 0.05% or 0.06 points to 109.80 per dollar at 14.22 WIB, after opening with a thin depreciation of 0.01% or 0.01 point at 109 levels , 87.
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.
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