【Fuji Tomi】Tokyo Gold rebounds on yen depreciation

（Tokyo crude oil and petroleum products）
Tokyo crude oil and petroleum products on the 9th rebounded on the back of a weaker yen. The front-month crude oil futures for October rose 70 yen to 34,870 yen, the front-month gasoline futures for November fell 50 yen to 47,820 yen, and the front-month kerosene futures for November rose 40 yen to 47,590 yen.
With a drop in international crude prices, there were deep declines during the night session, but the yen’s depreciation and a rebound in overseas crude encouraged a return to positive territory for crude oil and gasoline front-months, ending the night session higher. In the morning, Tokyo crude rose from the night-session close, expanding its gains. Buying was encouraged by the recovery in WTI and the yen’s depreciation, and by bullish expectations in the inventory statistics, leading to a broader sense of buying confidence. However, given that buying had already been aggressively pursued since the previous day, buying was more cautious than the previous day. Nevertheless, it rose into the 35,000 yen level after 9 o’clock. Yet, as the Nikkei Stock Average fell further and the yen weakened, the level fell below 35,000 yen before 11 o’clock. After 11:30, WTI turned negative, erasing gains, and Tokyo crude slid further, showing a sub-34,900 yen level. In the 14:00 hour, the yen’s depreciation led to a somewhat forced rebound, but as WTI was sold off again, the forced buying faded, bringing it back to the 34,800 yen range. As on the previous day, some overnight downside should be anticipated. Tokyo gasoline showed lackluster movements due to concerns about demand after Golden Week. The fall in WTI also weighed on Tokyo gasoline, which traded in the negative territory after around 14:30.

（Tokyo precious metals）
On the 9th, Tokyo gold rebounded on the back of yen depreciation. Front-month April gold futures rose 11 yen to 4,458 yen, and front-month April platinum futures held at 3,340 yen.
In the day session, Tokyo gold recovered supported by the weaker yen. During the night session, it fell to around 4,438 yen, but recovered to the 4,450 yen range. Although trading remained in a positive area, the range was narrow and turnover was very light, with a mood to wait and see before any night-session moves. Platinum also recovered, but NY platinum faced resistance around the $920 level, so the Tokyo platinum rebound was less impressive. In the 14:00 hour, NY platinum fell, pushing Tokyo platinum into negative territory. Tokyo gold’s decline in New York was offset by the yen’s depreciation, keeping the price within the range. Caution is warranted regarding overnight declines in New York gold.

（Tokyo rubber）
On the 9th, Tokyo rubber rose toward the close. Front-month October futures rose 2.1 yen to 208.7 yen.
The market seemed to shun the overnight Shanghai rubber decline, but the yen’s depreciation supported a re-buy, and the morning stayed firm. It jumped to 208.7 yen, briefly lifting the front-month futures. However, disposition to unload grew as Shanghai rubber declined, pushing prices back into the 205 yen range. With no new bullish catalysts, the mood remained largely range-bound and investors favored short-term trading. After midday, as the short-term trading cycle began to wrap up, price movements became mixed depending on lot-by-lot actions. Just before 3 PM, buyers suddenly re-entered and pushed to new morning highs. There is no obvious trigger, but the rebound is thought to reflect support at around the 205 yen level.

（Tokyo Corn）
On the 9th, Tokyo corn showed little reaction to Chicago’s decline and moved mixed. Front-month May futures rose 30 yen to 22,310 yen.
Following Chicago’s overnight drop, Tokyo futures weakened further in the night session, but the yen’s depreciation helped hold the decline. In the daytime, substantial selling orders appeared from the early hours, causing prices to drop from the night-session level. It opened at 22,110 yen and did not respond to the yen’s depreciation. After a forceful buying push around 10:30, it showed a high of 22,350 yen, supported by Chicago’s further rise and a weaker yen, but such aggressive buying was evident. Before 11:00, prices fell below 22,300 yen, yet considering Chicago’s gain and the yen’s strength, 22,200 yen or below would not have been surprising. As on the previous day, the market was characterized by aggressive buying. There is anticipation of Chicago’s sharp decline toward the weekend.

（Tokyo U.S. Soybeans）
On the 9th, Tokyo general soybeans showed virtually no movement. Front-month April futures rose 10 yen to 47,330 yen.
The previous day the front month did not trade, but today it completed around 9:30, then showed almost no movement thereafter. If this continues, speculative buying may be slim. The supply-demand report due in the early hours of November 11 Japan time may be ignored as well.
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