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Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, fell on Thursday, snapping a 3-day rally and sliding from a 9-month high, as investors took profits from the recent gains. The benchmark Tokyo Commodity Exchange (TOCOM) rubber contract for July delivery finished 2.4 yen, or 1.2 percent, lower at 195.1 yen ($1.76) per kg, after hitting its highest since May 23, 2018 at 199.6 yen earlier in the session.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 25 yuan to finish at 12,325 yuan ($1,835) per tonne. The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 142.1 US cents per kg, down 1.3 percent. "Since the TOCOM has failed to break a 200 yen mark in early session, disappointed investors booked profits," said Satoru Yoshida, a commodity analyst with Rakuten Securities, adding a firmer yen also weighed on market sentiment. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.

The US dollar was quoted around 110.69 yen on Thursday, compared with around 110.86 yen on Wednesday afternoon

Oil prices hovered close to 2019 highs on Thursday, bolstered by Opec-led supply cuts and US sanctions on Venezuela and Iran, but were prevented from rising further by slowing global growth.

Indonesia will propose implementation of the Agreed Export Tonnage Scheme (AETS) in a meeting of the top three rubber-producing countries, due on Feb. 21-22, a senior trade ministry official told reporters on Friday.

Copyright Reuters, 2019


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