@TOCOM rubber gives up early gains to end lower as Shanghai falls (25/09/2560)

25 Sep 2017
44 times

 (Sept 21): Benchmark    gave up early gains to end lower on Thursday, marking their fifth consecutive session of decline, as Shanghai extended falls toward late trade.

The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery finished 2.0 yen, or 0.9%, lower at 210.2 yen ($1.87) per kg, after rising as far as 217.4 yen earlier in the session. The close was the lowest since Aug. 14.

The most-active rubber contract on the  for January delivery plunged 460 yuan to finish at 14,515 yuan (US$2,201) per tonne. It hit the lowest since  26 of 14,440 yuan earlier in the session, reversing from an overnight gain.

“The TOCOM was dragged down by a continued Shanghai slide,” said Hiroyuki Kikukawa, general manager of research at Nissan, adding a weaker yen could not offset selling pressure.

The dollar rose to a two-month high against the yen after a hawkish-sounding Federal Reserve heightened expectations for an interest rate hike in December.

A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

“It doesn’t look that Shanghai market has hit a bottom yet and it may test the next support of 14,000 yuan mark,” Kikukawa said, adding that TOCOM may fall to as low as 210 yen.

The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 150.7 US cents per kg, down 4.1 cents.

(US$1 = 112.4500 yen)
(US$1 = 6.5945 Chinese yuan)

Source: globalrubbermarket (21/09/2017)

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