“If the international prices go up further, then the prices may climb here too,” informed another trader. The possibility of spot markets of natural rubber in India strengthening is thus much more solid for Monday. Given the event of prices climbing on the TOCOM, when the natural rubber futures on India’s NMCE open for trade, chances are more that they too would go up.
Bank of Japan having unleashed record stimulus measures to the tune of $1.4 trillion in two years, the Japanese currency Yen tumbled raising the appeal of natural rubber futures there. Natural rubber futures on the Tokyo Commodity Exchange or TOCOM was seen trading at 264.8 yen a kilogram, a gain of 11.3 yen as of 12.20 JST in September contract.
The currency yen was seen trading at 98.41 per dollar after touching 98.85, the lowest since June 2009. Japan is in a state of perpetual deflation for over two decades and the latest round in stimulus measures is expected to usher in 2% inflation rate in two years.
“The BOJ’s record stimulus sent the yen tumbling against the dollar, which boosted investor appetite for futures,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said to Bloomberg on Monday.
Meanwhile, in the spot markets in South India at Kottayam, natural rubber prices were at Rs.164 levels on Friday.
“There are no buyers at the current levels as they anticipate a further downtrend to occur in prices,” said a seasoned trader. He expected the prices to come down by another 4 rupees in spot markets, if the downtrend prevails.
“If the international prices go up further, then the prices may climb here too,” informed another trader. The possibility of spot markets of natural rubber in India strengthening is thus much more solid for Monday.
Given the event of prices climbing on the TOCOM, when the natural rubber futures on India’s NMCE open for trade, chances are more that they too would go up.
Futures on Saturday, closed at Rs.16086/100 kg in May contract on NMCE.
Source: Commodity Online
