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2020

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04

International Rubber Day review: At the beginning of the New Year, Tokyo rubber prices bucked the trend higher

The RSS2006 contract opened at 201.6 yen in Tokyo morning trade, down 0.8 yen from the previous close.


Abstract:

The RSS2006 contract opened at 201.6 yen in Tokyo morning trade, down 0.8 yen from the previous close. The RSS2006 contract opened at 162 yen, up 1.9 yen from the previous session. The dollar was trading around 107.986 yen in the morning.

On the first trading day of 2020, the Tokyo rubber market bucked the trend when the overall market environment was at the peak of the risk-off wave, and the far-month contract once reached an intra-day high of 203.5 yen before closing high. Due to concerns about the situation in the Middle East, the rise in crude oil prices over the weekend is the only explanation for the rise in Tokyo rubber, but the fall in the spot price of Thailand on the 3rd can still not rule out the possibility of multi-force funds. In terms of macroeconomic environment, China reduced the bank reserve ratio again at the beginning of the year, and the willingness to maintain growth is obvious. In addition, the major securities indexes in Europe and the United States fell but the decline was limited, and the deterioration of the situation in the Middle East did not fully dampen the optimism in the financial market. As the price of the Tokyo far month contract and the main contract in Shanghai appears to be at a discount, the possibility of further increases in the short term is small.

In terms of spot, the January FOB price of No. 3 cigarette sheet on January 6 was near 51.86 baht, up 3.16 baht from the previous trading day. The January FOB price of the 20th label rubber is near 45.26 baht, up 0.04 baht from the previous trading day. The USS spot price was around 39.57 baht, up 0.64 baht from the previous session.

International Rubber Day review: At the beginning of the New Year, Tokyo rubber prices rose against the trend to read the latest report on the APP

From a technical point of view, the RSS far month contract opened in the 200 yen line to maintain a strong trend, a large number of buy orders can be seen during the day to pull up the protection. However, due to the drop in spot and raw material prices in Thailand over the weekend, the current price spread opened, and the price of the front-month contract in Tokyo also hovered around 174 yen, making the Tokyo market as a whole lack of momentum to break through the previous high. In the future, pay attention to the trend of long funds while avoiding excessive chase.

The spread between the 2006 contract and the Shanghai 2005 contract (Tokyo-Shanghai) was $7 / ton at the close of trading in Tokyo on January 6.