Yen’s gains weigh on Tocom rubber

The price of natural rubber futures for the most active contract ie May 2016 opened lower due to the strengthening Japanese yen against the US dollar. The Japanese currency is observed to have increased by 0.03%, currently at 122.57 per US dollar. The rising value of the Japanese yen is making prices of commodities traded in this currency to be more expensive for foreign buyers, resulting in a decline in demand. The strengthening of the yen was driven by positive economic indicator data from Japan. Average Cash Earnings (YoY) for October was released this morning, which showed a 0.7% increase from the consensus of 0.4% and the previous result of 0.6%. The Tocom natural rubber price for the most active May 2016 contract is currently at 170.3 yen per kilogram. The natural rubber futures price has decreased by -0.4 yen compared to the previous close of 170.4 yen per kilogram. Vibiz Research Center analysts predict that the Tocom rubber price may further weaken today. Economic indicator data from Japan is still due to be released today, showing a potential increase in Consumer Confidence according to consensus, which may strengthen the yen. Resistance is expected at 175.00 yen and 180.00 yen for today’s trading session.