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26 Jul 2016

RUBBER PRICES JULY 26: Jan 2017 Contract Dips on Weak Crude, Yen Gains

RUBBER PRICES JULY 26: Jan 2017 Contract Dips on Weak Crude, Yen Gains


Rubber price plunged 2.15% or 3.40 points to 154.70 yen/kg at 07:42 Western Indonesia Time (WIB), after opening with a 0.70% decline or 1.10 points at 157.


Sharp decline in rubber price for January 2017 contract in line with the strengthening Japanese yen against the US dollar.


This morning, Japanese yen rate strengthened 0.64% or 0.68 points to 105.13/US$ at 07:48 WIB, after opening with a stagnant movement at 105.81.


On the other hand, the sharp decline in rubber price was also influenced by the plunge in global crude oil price. Crude oil price fell to its lowest level within the last three months after US producers increased their drilling activities.


In yesterday’s trading closure (Tuesday morning WIB), West Texas Intermediate Crude Oil for September delivery contract dropped 2.4% or US$1.06 to US$43.13/barrel, the lowest closure price since April 25.


Meanwhile, Brent Crude for September delivery ended with a drop of 97 cents or 2.1% to US$44.72/barrel in ICE Futures Europe Exchange.


January 2017 Rubber Contract Price Movement on TOCOM
















Date



Price (Yen/Kg)



Change



26/7/2016


(7:42 WIB)



154,70



-2.15%



source: Bloomberg


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