Tocom Rubber Futures Edge Lower As Oil Retreats; Asia Stocks Drop

Crude oil prices rose for a second straight session as short covering lifted U.S. crude nearly 3 percent on Wednesday, December 16, settling at $37.35 a barrel, up $1.04, or 2.86 percent. Brent settled up 49 cents, or 1.29 percent, at $38.41 a barrel.
However, in early Asian trading Thursday, West Texas Intermediate fell 5 cents to 36.26 by 0024 GMT. Prices are still down amid concerns about a global glut and mild winter demand.
On the other hand, the most active rubber contract on the Tokyo Commodity Exchange, for May 2016 delivery, was down 0.1 yen to 162.0 yen per kg, from Wednesday's close of 162.1 yen per kg.
Vibiz Research Center Analyst predicts that Tocom rubber futures prices will continue to be pressured by falling global crude oil prices. The Japanese yen's exchange rate also needs to be taken into account. Tocom natural rubber prices are most strongly influenced by these two indicators.
Tocom rubber futures will test support at 157.00 yen and 152.00 yen. Resistance will be encountered at 167.00 and 172.00 yen if prices turn positive.
Freddy/VMN/VBN/Analyst-Vibiz Research CenterEditor: Asido Situmoranghttp://vibiznews.com/2015/12/16/harga-karet-tocom-turun-tipis-dengan-retreatnya-harga-minyak-perdagangan-asia/