[Fujitomi] Tokyo gold and platinum fall back

（Tokyo crude oil and petroleum products）
On the 19th, Tokyo crude oil and petroleum products fell back due to a firmer yen and ongoing overseas crude declines. The September crude oil futures contract settled 530 yen lower at 36,840 yen, the October gasoline futures contract settled 470 yen lower at 49,950 yen, and the October kerosene futures contract settled 580 yen lower at 48,040 yen.
With the yen now strengthening, erasing the previous day’s yen weakness which had supported Tokyo prices, and with overseas crude prices continuing to slump, the Tokyo oil market was pressured into a nighttime decline. The key U.S. API inventory report showed crude stocks fell by 8.4 million barrels from the previous week, but the decline was smaller than expected. Conversely, gasoline stocks rose against expectations, increasing by 1.4 million barrels. With demand season for gasoline in mind, New York gasoline led WTI higher, but gasoline demand failed to meet expectations, and WTI was sold after the report. In the morning, Tokyo saw selling as traders disliked the weaker API data, but did not reach new lows in after-hours trading. Broadcasting a strong recovery in response to the Nikkei stock average’s rebound, the front-month crude futures were bought back to 36,990 yen in the 9 o’clock hour. However, due to the soft overseas crude market and another retreat in the Nikkei, Tokyo oil markets favored selling again. From just before 14:00, the Nikkei’s rise helped push the yen lower, but with overseas crude still soft, buying in the Tokyo market remained lackluster. Based on the API inventory data and new fears about May US crude production, a cautious stance to selling on the night would have been prudent.

（Tokyo precious metals）
On the 19th, Tokyo gold fell due to a stronger yen and a drop in NY gold. The February gold futures contract settled 12 yen lower at 4,477 yen, and the February silver futures contract settled 28 yen lower at 3,424 yen.
Tokyo gold softened. In after-hours, the price hit 4,467 yen but recovered to the 4,490 yen range, while in daytime trading it stayed in negative territory. NY gold again fell below $1,290, facing a double blow from the stronger yen. Tokyo platinum, which had surged the previous day, suddenly dropped. The decline was driven by the poor mood in NY platinum as it fell sharply. While warning that selling on the rallies in platinum could be correct, platinum’s demand for automotive catalysts remained weak, so continuing to sell on rallies would be prudent. Above 3,450 yen would be a favorable selling area. Tokyo gold should be wary of NY gold’s downside moves, with 4,500 yen appearing quite challenging in the near term. After 14:00, as the Nikkei rose and the yen weakened, Tokyo platinum narrowed its losses, but gold disliked the drop in NY gold, pushing back toward 4,470 yen. Caution is advised regarding NY gold’s downside on the chart.

（Tokyo Rubber）
On the 19th, Tokyo rubber continued to fall sharply, focusing on the nearby contract. The August futures contract settled 9.9 yen lower at 203.0 yen.
The sharp decline in the nearby contract continued, with the front-month slipping below 210 yen, and 200 yen appeared to be only a matter of time. It fell sharply from the morning, dipping below 210 yen. The move was prompted by fears of a further decline in the nearby contract. Before noon, nonferrous metals advanced sharply, helping a rebound to the 204 yen vicinity, but a renewed concern over the nearby contract’s further downside caused gains to pause. However, the strength in the nearby contract’s buyback activity supported some recovery in the front months. Continued focus remains on the nearby contract.

（Tokyo US soybeans）
On the 19th, Tokyo soybeans posted a net decline in the front-month, but the downside showed some resistance. The April front-month settled 170 yen lower at 46,580 yen.
With Chicago futures continuing to fall and the yen strengthening, there was virtually no momentum in after-hours trading, and front-months were mixed. In daytime trading, front-months were sold, but the declines were modest. The rebound in Chicago after hours reduced selling pressure, but the Asia session’s rally has been a false signal, keeping Tokyo’s price levels relatively elevated.




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