Tocom Rubber Ends Oct. 13 _1 Percent Lower

The increasing value of the Japanese Yen currency is making commodity prices that are traded using this currency become relatively more expensive for foreign buyers. The impact is that the demand for this commodity has experienced a decrease.

The price of oil dropped on Thursday (13/10) in the Asian session, pressured by a rise in OPEC production and an increase in the crude inventory of the United States.

The price of the U.S. West Texas Intermediate (WTI) crude futures dropped 54 cents, or 1.08 percent, at $49.64 per barrel.

The International Brent crude oil futures price was traded at $51.37 per barrel at 0256 GMT, which is a 44 cents (or 0.85 percent) decrease from its previous closing.

See: Crude Oil Price Drops 1 Percent in the Asian Session

The drop in the price of crude oil is making the cost of producing synthetic rubber cheaper. The impact is that the demand for the natural rubber commodity, such as the one traded in Tocom, has decreased.

In the trading session this afternoon, the rubber futures price for the most active contract on the Tokyo Commodity Exchange, which is the March 2017 contract, ended up weakening by -1.9 yen or -1.06 percent, to 177.8 yen per kilogram, a decrease from its previous closing price of 179.7 yen per kilogram.

The Vibiz Research Center Analyst predicted that the movement of the Tocom rubber futures price in subsequent trades still has the potential to experience pressure due to the potential strengthening of the Japanese Yen and the weakening of crude oil.

The price of the rubber futures commodity on the Tocom exchange will test the Support level at 173.00 yen and 168.00 yen. The price will reach Resistance at the 183.00 and 188.00 yen levels if the price turns to positive territory.

Editor: Asido Situmorang
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