Majority of commodities face downward pressure as US dollar strengthens
Tokyo – Natural rubber futures closed the trading week ended 22 Sept lower than the week before across major Far East exchanges, according to Japan Stock Exchange (JPX).
In Osaka, Japan, OSE rubber futures for February delivery fell 0.6%, while Shanghai futures closed 2.1% lower, said JPX’s weekly report 25 Sept.
China’s INE rubber contracts for November delivery reported a 1.2% decline during the week while Singapore’s SICOM saw an end to its strong performance of recent weeks with a 1.2% decrease.
JPX linked the declines to “long liquidation and profit-taking activities”, which followed a surge in prices over the recent weeks.
Trading volumes, it added, also decreased across all exchanges as funds closed out long positions.
According to JPX, the majority of commodities faced downward pressure due to the strength of the US dollar last week.
In addition, labour strikes by the United Auto Workers (UAW) in the US across three major car makers are impacting the automotive industry and could potentially have a negative effect on rubber prices.
On a positive note, JPX noted continued optimism regarding the potential recovery of the Chinese economy following recent government stimulus measures and interest rate cuts.
Selected NR futures price trends on major trading exchanges