Benchmark Tokyo rubber futures extended gains into a third session on Thursday as investors continued to look for bargains and speculators unwound short positions, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 1.4 yen, or 0.8%, higher at 175.2 yen (US$1.59) per kg.
"Speculators who have built up short positions over the past month were rapidly unwinding their positions," a Tokyo-based dealer said, adding Wednesday's rally in oil prices also boosted risk appetite among investors.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, have lost about 15% from May's high by early this week.
Oil prices steadied on Thursday, with US crude pulling back from 3½-year highs, but supply remained tight with investors concerned about the prospect of a big fall in crude exports from Iran due to US sanctions.
"I expect the TOCOM to recover at around 185 yen level as the market has been oversold recently," the dealer said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan to finish at 10,455 yuan (US$1,578) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 138.5 US cents per kg, down 0.5 cent.
Thursday, June 28, 2018
Wednesday, June 27, 2018
Crude Oil Up, Support for NR
Rubber prices closed higher in late trading today, Wednesday (27/06/2018), following the strengthening of crude oil prices.
The price of rubber for delivery in November 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.82% or 1.4 points to 172.90 yen per kilogram.
The previous rubber price opened in the green zone with a rise of 0.82% or 1.4 points at 172.90, after closing stagnant at 171.50 level at the end of trading Tuesday (26/6/2018).
Takaki Shigemoto, an analyst at JSC in Tokyo, said that the strengthening of rubber prices was triggered by increased investor interest in this commodity as the strengthening of oil prices triggered the cost of making synthetic rubber substitute products.
"Prices are also higher because the contract is considered too cheap, amid the high supply and demand fundamentals," said Takaki, as quoted by Bloomberg.
The price of West Texas Intermediate (WTI) oil for August 2018 contract rose 0.34% or 0.34 points to as low as US $ 70.77 per barrel at 14:57 pm, while Brent oil for the same month delivery contract was up 0.47% to the level of US $ 76.67 per barrel.
Meanwhile, the yen appreciated to rise 0.26% or 0.29 points to 109.77 yen per dollar at 15.13.
The price of rubber for delivery in November 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.82% or 1.4 points to 172.90 yen per kilogram.
The previous rubber price opened in the green zone with a rise of 0.82% or 1.4 points at 172.90, after closing stagnant at 171.50 level at the end of trading Tuesday (26/6/2018).
Takaki Shigemoto, an analyst at JSC in Tokyo, said that the strengthening of rubber prices was triggered by increased investor interest in this commodity as the strengthening of oil prices triggered the cost of making synthetic rubber substitute products.
"Prices are also higher because the contract is considered too cheap, amid the high supply and demand fundamentals," said Takaki, as quoted by Bloomberg.
The price of West Texas Intermediate (WTI) oil for August 2018 contract rose 0.34% or 0.34 points to as low as US $ 70.77 per barrel at 14:57 pm, while Brent oil for the same month delivery contract was up 0.47% to the level of US $ 76.67 per barrel.
Meanwhile, the yen appreciated to rise 0.26% or 0.29 points to 109.77 yen per dollar at 15.13.
Friday, June 8, 2018
Worries of over rising supply, NR prices fall down
Rubber prices shed more than 1% in late trading today, Friday (8/6/2018), amid concerns over rising supply from Thailand.
The price of rubber for delivery in November 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.90% or 3.60 points at 186.10 yen per kilogram (kg).
This morning the main commodity price of tire manufacturing was opened flat at 189.70, after ending up 0.85% or 1.60 points on trading Thursday (7/6/2018).
According to Hideshi Matsunaga, Sunward Trading analyst, as rubber supply from Thailand increased after a low production season ended last month, the amount of rubber stocks could continue to rise.
The amount of rubber stocks monitored by the Shanghai Futures Exchange reported rose 0.3% to 475,132 tons last week, the highest level since November.
"Rubber prices are also limited concerns that a trade tension with the United States could push the Japanese currency against the US dollar, thus making rubber [Tocom] prices more expensive for foreign investors," Matsunaga added.
The yen continued to appreciate 0.15 percent, or 0.16 points, to 109.54 per dollar at 13:52 pm, after ending up 0.44 percent or 0.48 points at 109.70 late Thursday / 6).
Quoted by Bloomberg, the yen extended its gains amid global trade tensions ahead of the G7 Summit and concerns over growing instability in some emerging market currencies.
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.
In line with rubber, West Texas Intermediate (WTI) oil prices for July delivery in July 2018 slid and fell 0.49% or 0.32 points to settle at $ 65.63 a barrel on the New York Mercantile Exchange at 13:41 pm.
The price of rubber for delivery in November 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.90% or 3.60 points at 186.10 yen per kilogram (kg).
This morning the main commodity price of tire manufacturing was opened flat at 189.70, after ending up 0.85% or 1.60 points on trading Thursday (7/6/2018).
According to Hideshi Matsunaga, Sunward Trading analyst, as rubber supply from Thailand increased after a low production season ended last month, the amount of rubber stocks could continue to rise.
The amount of rubber stocks monitored by the Shanghai Futures Exchange reported rose 0.3% to 475,132 tons last week, the highest level since November.
"Rubber prices are also limited concerns that a trade tension with the United States could push the Japanese currency against the US dollar, thus making rubber [Tocom] prices more expensive for foreign investors," Matsunaga added.
The yen continued to appreciate 0.15 percent, or 0.16 points, to 109.54 per dollar at 13:52 pm, after ending up 0.44 percent or 0.48 points at 109.70 late Thursday / 6).
Quoted by Bloomberg, the yen extended its gains amid global trade tensions ahead of the G7 Summit and concerns over growing instability in some emerging market currencies.
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.
In line with rubber, West Texas Intermediate (WTI) oil prices for July delivery in July 2018 slid and fell 0.49% or 0.32 points to settle at $ 65.63 a barrel on the New York Mercantile Exchange at 13:41 pm.
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