[Fujitomi] Corn bought as Chicago sharp rise at the start of the week

（Tokyo crude oil and petroleum products）
Tokyo crude oil and petroleum products for the day are bought, with gasoline and kerosene in demand due to expected increased demand during the Golden Week period. The near-month crude oil futures for September are 10 yen lower at 35,870 yen, the near-month gasoline futures for November are 100 yen higher at 48,680 yen, and the near-month kerosene futures for November are 230 yen higher at 48,530 yen.
From a strong rebound driven by autonomous adjustment from the previous weekend’s positions in WTI and Brent, the Tokyo crude oil market had been bought toward the close of last week, but it fell back as overseas crude levels were trimmed at the start of the week. Since it is also a lull period of Golden Week, trading was very subdued. In intraday trading, gasoline and kerosene were bought on expectations of increased demand during Golden Week. However, the leading rise was driven by gasoline and kerosene futures that are unrelated to Golden Week demand, creating a rather distorted market structure. There is a possibility that a forced correction at the end of Golden Week will be imposed after the holiday. The yen’s depreciation toward the close pushed crude oil back into positive territory.

（Tokyo precious metals）
Tokyo gold rose during the day, but the gains narrowed. Gold futures for April were up 11 yen from the previous week’s close at 4,520 yen, while platinum futures for April were down 14 yen at 3,378 yen.
With New York gold pushing toward the 1,270-dollar level at the start of the week, Tokyo gold rose to the 4,530 yen level. However, fearing a decline in New York gold, the price fell to the 4,516 yen range around 10 o’clock. While remaining in positive territory overall, selling interest increased due to the decay in New York gold. The initial rise was due to geopolitical risks, but as the FOMC meeting approached in the U.S., profit-taking grew and contributed to the decline in New York gold. New York platinum showed further weakness due to weak fundamentals, and Tokyo platinum also fell in the afternoon. Tokyo gold hovered around 4,520 yen. New York gold’s decline was driven by the ongoing yen weakness, which provided a selling opportunity for Tokyo gold.

（Tokyo rubber）
Tokyo rubber for the day rose briefly but was then sold off. The near-month October contract was down 1.7 yen at 215.6 yen.
In the morning, Tokyo rubber was pressured by the overnight softening and a stronger yen at the start of the week, pushing it lower. Shanghai rubber was closed for holidays at the start of the week, and the decrease in Shanghai rubber stocks reported on the weekend was noted, prompting a quick rebound to the daytime high around 10 o’clock. However, Golden Week is a holiday period, and a cautious mood dominated, so advances did not last. Before noon, as Shanghai’s market remained closed, price movement remained in a narrow range centered around the day’s levels. After 1 p.m., there was a wave of unwinding selling, widening the downside in near-month contracts, reflecting the deteriorating market mood. The next day will depend on the moves of the underlying lot.

（Tokyo corn）
Tokyo corn for the day rose on expectations of Chicago’s gain at the start of the week, with the near-month May contract up 160 yen at 22,000 yen.
Chicago corn remained on a rebound at the start of the week despite Friday’s decline due to improving weather expected in the U.S. Corn Belt. Over the weekend, tornadoes, heavy rain, and floods were reported in the southern U.S., with fatalities. Damage from frost in Kansas and other key producing areas raised concerns, and Chicago wheat jumped over 2% while Chicago corn followed with gains. From early on, Chicago corn’s bid price was high, pushing the Tokyo near-month up to around 21,800 yen, then into the 21,900 yen range after 9 a.m. The dollar’s weakness also supported gains, but considering Chicago’s later gains narrowing, the overbuying activity appears excessive. However, rain in the eastern U.S. Corn Belt is expected to continue for some time, so market view on this rainfall remains a focal point.

（Tokyo soybeans for the U.S.）
Tokyo soybeans for the day were mixed. Near-month April contracts were 70 yen lower at 46,450 yen.
There was virtually no activity, with price quotes not being updated during the day. At the start of the week, Chicago soybeans rose on the strength of the nearby wheat, and with the favorable weather in the U.S. Corn Belt, this may reflect a back surging price in Chicago as well. The near-month contract only became active after around 2 p.m.
https://www.fujitomi.co.jp/?p=14882