Rubber Slips From High

The price of rubber to be delivered in October 2018, the most active contract at the Tokyo Commodity Exchange (Tocom), fell 0.50% or 1 yen to a level of 199 yen per kilogram (kg).

Whereas the price of the rubber that is the main material of tire production initially strengthened when it opened with an increase of 0.30% or 0.60 points to the position of 200.60.

On Monday (5/21), rubber ended up increasing by 3.15% or 6.10 points to a level of 200, which is the highest level throughout the term of the contract.

Kei Kobashi, an analyst at Sumitomo Corp., said that the price of rubber had slipped after the rally on Monday’s trading looked excessive if we look at the fundamentals of the rubber.

According to Lekshmi Nair, head of economics and statistics at the International Rubber Study Group, global natural rubber production could increase by 2% in 2018 from the estimate of 13.55 million tons in 2017.

Meanwhile, total consumption, including synthetic rubber, could rise by 3.2% from the estimate of 28.47 tons in 2017.

What also burdened the movement of the price of rubber was that the time of low production in Thailand this month will end. The rubber rally was previously supported by low production in Thailand until May.

Meanwhile, the yen exchange rate today decreased by a small amount of 0.05% or 0.06 points to a level of 111.11 for every US dollar at 14:33 WIB, after having weakened by 0.26% or 0.29 points to a level of 111.05 on Monday’s (5/21) trading.

On the other hand, the price of West Texas Intermediate (WTI) oil for delivery in June 2018 continued to increase by 0.54% or 0.39 points to a level of USD 72.63 per barrel at the New York Mercantile Exchange at 14:22 WIB.

The Movement of the Price of October 2018 Rubber Contract at the Tocom

source: http://market.bisnis.com/read/20180522/94/798198/harga-karet-tergelincir-dari-level-tertinggi