Commodity Watch Indonesia: Rubber Price Falls, Yen Strengthens
Rubber prices fell sharply on Monday morning (24/07), in line with the strengthening Japanese yen. The price of rubber (December 2017 delivery, the most active contract on the Tokyo Commodity Exchange), had slid 2.33 percent to 209.50 yen per kilogram (kg) at 10:28 am local Jakarta time.
Earlier this morning, rubber prices opened down -0.23 percent to 214.00 yen per kg. At the end of last week, the rubber price had fallen 0.79 percent to 214.50. Reuters reported last week that the weakening of rubber prices occurred due to profit taking by market participants after a strong rally.
Meanwhile, Japan's raw rubber inventories were reportedly up 5.9 percent to 6,723 tons, while rubber inventories in Qingdao (China) fell 3.2 percent to 201,400 tons on 14 July 2017.
Also weighing on the rubber price, the yen strengthened 0.16 percent to 110.95 per US dollar at 10:59 am local Jakarta time on Monday (24/07).