【Fujitomi】Tokyo crude oil remains in sell-off, with an afternoon predominantly soft tone

("Tokyo crude oil and petroleum products")
Tokyo crude oil and petroleum products on the 10th were mixed. The front-month crude oil for October settled 30 yen lower at 34,840 yen, the front-month gasoline for November settled 30 yen lower at 47,790 yen, and the front-month kerosene for November settled 80 yen higher at 47,670 yen.
While overseas oil markets generally fell, the yen also weakened, causing the Tokyo night oil market to see both buying and selling activity. In the notable API inventory statistics, crude oil inventories fell sharply, but this was largely due to a substantial drop in crude oil imports, suggesting the decline might be temporary and the market reaction was tepid. On the other hand, the sudden surge in gasoline inventories amid a drop in oil production signaled further weak gasoline demand, pushing NYMEX gasoline down further and limiting WTI's upside. In Tokyo, in the morning, the strong yen kept prices in negative territory, but as the Nikkei average rose, the yen weakened and prices briefly turned positive. However, when the yen's decline was checked, prices slipped back into negative territory, showing unstable moves. In the afternoon, yen strength returned and WTI softened, keeping gasoline and crude oil mainly in negative territory.

("Tokyo Precious Metals")
Tokyo gold was unchanged on the 10th. The front-month gold for April was 4,458 yen, unchanged from the previous day, and the front-month platinum for April was 3,320 yen, down 20 yen.
In the morning, Tokyo gold rose on the back of a weaker yen and a rebound in NY gold, briefly hitting 4,465 yen, but by midday, a firmer yen and a retreat in NY gold pushed it back into negative territory, with trading showing a tug-of-war. As U.S. long-term interest rates rose, the dollar strengthened and the yen weakened sharply, but NY gold also fell sharply, so Tokyo gold declined. As NY Dow fell toward the close, NY gold was bought back substantially, lending a firmer tone to Tokyo gold. Still, the risk of a downside in NY gold remains something to watch, and buying in Tokyo was limited. Tokyo platinum, reacting to NY price declines, was again sold off, and the stance remained to sell on any rally; June was seen as the main decline period.

("Tokyo Rubber")
Tokyo rubber on the 10th closed with gains narrowed toward the end. The front-month October contract was up 0.4 yen at 209.1 yen.
In the night session, Tokyo showed rebound as the previous close did well, aided by a rebound in Shanghai Rubber and the weaker yen, but there were no new bullish factors for rubber, so upside was limited. It dipped below 210 yen several times in the morning, but selling did not continue. Those who had exhausted selling seemed to be more inclined to see a further rebound, suggesting a willingness to buy. Today, unlike yesterday, it trended lower toward the close. It seems traders soured on Shanghai Rubber’s heavy up move.

("Tokyo Corn")
Tokyo corn rose on the 10th, helped by a weaker yen and higher Chicago futures. Front-month May settled 70 yen higher at 22,380 yen.
Position adjustments ahead of the supply and demand report due at 1 a.m. Japan time and a slight rise in Chicago aided by further yen weakness pushed Tokyo higher in the night session. In the morning, as the yen strengthened, the gains narrowed, but there were tentative buy orders that pushed to 22,400 yen around 10 o'clock. The market showed somewhat aggressive buying, consistent with a buoyant mood after the holiday. The supply and demand report would be released at 1 a.m., and from this year’s balance (for 2017) onward, the market would be closely watching. After the release, attention likely shifted back to the U.S. Corn Belt weather, with expectations for a rebound sell-off in Tokyo toward the weekend given the aggressive buying.

("Tokyo soybeans, U.S.")
Tokyo canola rose sharply on the 10th. Front-month April settled 320 yen higher at 47,650 yen.
For the first time in a while, Tokyo soybeans surged in the night session. Supported by Chicago gains and a weaker yen, they extended gains in the morning, with the front month exceeding 48,000 yen. The move was rather aggressive, and given that selling pressure had been ignored, it is hard to deny it as overbought. In the late morning, the front month pared gains, with a correction expected ahead.
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