SINGAPORE (Commodity Online): Natural rubber traded lower this morning as crude prices dropped joined with the increased stockpiles in China.
The prices in on the Tokyo Commodity Exchange (TOCOM) fell 1.2% to 335.8 yen per kilogram, off from the 27-month peak of 343 yen on October 15.
Rubber inventories monitored by the Shanghai Futures Exchange expanded 901 tons to 37,801 tonnes, the highest level in almost six months.
Rubber fell for the first time in past five trading session, as the supplies seemed increasing in Chinese markets.
Further, Crude oil traded near a two-week low, weakening the appeal of natural rubber as an alternative to synthetic products used in tires.
However, the losses in rubber futures were limited as heavier-than-usual rains in Southeast Asia and China curbed output.
Meanwhile, it is feared that a severe drought in Yunnan at the beginning of this year and recent torrential rain in Hainan, the top two producing areas in China, will reduce domestic rubber output.
(commodityonline.com)
No comments:
Post a Comment