【Fuji-Tomi】Tokyo Rubber Plunges

(Tokyo crude oil and petroleum products)
On the 27th, Tokyo crude oil and petroleum products fell as the yen appreciated. Crude oil futures for August fell 540 yen from the previous close to 30,430 yen, gasoline futures for September fell 500 yen to 47,960 yen, and kerosene futures for September fell 330 yen to 43,960 yen.
At the end of the week, Baker Hughes reported a sharp increase in oil drilling rigs in the US, marking 10 weeks of gains. Unfortunately, as usual, WTI at the start of the week did not act as a selling factor, and with dollar weakness supportive, bought back, and aided by a weaker yen in Tokyo’s night session, overall it rose. However, with NY Dow futures plunging at the start of the week and the yen strengthening further, Tokyo crude oil moved into negative territory from the start of the week. It resisted early downside, but once WTI fell into negative territory before 10 o’clock, the downside widened. It seemed WTI initially benefited from dollar weakness, but later, the bear-leaning drilling rigs and the sharp fall in NY Dow futures soured sentiment. By the way, Tokyo kerosene, as its demand deadline month began trading, saw futures widen the spread and rise. Now, around 14:00, as WTI widened its losses, Tokyo crude oil finally posted a new low for the night session. In after-hours trading, it may test 34,000 yen. WTI near-month May futures slipped below 47.50 dollars shortly after 14:30.

(Tokyo Precious Metals)
Tokyo gold rose solidly on the back of a sharp rise in NY gold on the 27th. Gold futures for February rose 4 yen to 4,444 yen, and platinum futures for February rose 18 yen to 3,441 yen.
On Monday morning, Tokyo gold traded in negative territory due to the yen’s advance. However, as NY gold surged to the 1260-dollar level on dollar weakness and risk aversion, Tokyo gold was subsequently bought back. Due to the yen’s strength, the rebound was limited, but buying on dips supported by expectations of higher NY gold proved prudent. In the 10 o’clock period, Tokyo gold rose to 4,449 yen on the perception of NY gold at around 1,260 dollars. But with the yen continuing to strengthen, it did not reach the night session highs. Given NY gold’s strong advance in the second quarter, the buying stance remained unchanged.

(Tokyo Rubber)
Tokyo rubber on the 27th fell sharply. August futures were down 9.9 yen from the previous close to 237.5 yen.
At the start of the week, Tokyo rubber showed weakness, with the front-month price slipping below 240 yen after 9 o’clock as the night session low carried over. The front month closed for delivery, but buyers did not appear, which likely pressured the market and accelerated the decline. Around midday, the front month price fell to the 235 yen range, but the lack of buying interest for the current month continued to push for selling to close out positions.

(Tokyo Soybeans)
Tokyo soybeans continued to decline, but the sharp yen appreciation was largely shrugged off, with minimal downside. The near-month February futures were down 720 yen from the previous close to 47,560 yen.
Tokyo soybeans remained under pressure despite the Chicago collapse and yen strength over the weekend, with a muted reaction to the anticipated rebound in the night session. In the morning, prices had already retreated. However, there were no sell orders below 48,000 yen, and the weak factors showed little impact. This soybeans’ continued weakness may have fed into the fall in corn. Prices could easily fall by about 1,000 yen, given the levels already below 47,000 yen, though a one-thousand-yen drop would not be surprising.




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