The rubber market continues to move higher and prices break through resistance to new highs

In the Tokyo rubber market at the end of last week, the front-month contract continued its previous strong trend, and finally formed a discount structure shift for the far-month contract, and rose sharply to 196 yen in the evening against the background of a smaller market
.
Subsequently, under the effect of short-term profit-taking transactions, it fell slightly, but the spread between the contracts still maintained a state of near and far month discount in terms of structure
.

The Shanghai market has been relatively stable recently, except for following the slight price increase in the Tokyo market, the main January contract has not performed much under the resistance of the 12800 integer
.
Since the Thai government closed its borders due to the epidemic in the country of origin, the inability of foreign labor to enter the country has led to a serious shortage of labor, and the spot market and raw material prices have maintained an upward momentum
.
Although the epidemic situation in Western developed countries has slowed down and the economies of various countries have begun to recover, whether the new crown epidemic will return after the autumn in the second half of the year is still a major hidden danger
in the financial market.
In addition, Japanese Prime Minister Abe's resignation at the end of last week may affect the recovery of the Japanese economy, which in turn affects market confidence and increases the pressure
on shorting of far-month contracts.

In terms of spot, the August FOB price of No.
3 cigarette tablets on August 28 was around 59.
52 baht, up 1.
76 baht
from the previous session.
The August FOB price of No.
20 label rubber was around 44.
95 baht, up 0.
9 baht
from the previous session.
The USS spot price was around 51.
07 baht, down 0.
07 baht
from the previous session.

On the technical side, the Tokyo far month contract formed a breakthrough
upward in the second half of last week after a short-term range-bound oscillation.
Combined with the new listing of the February contract, the Tokyo far month contract once broke through the resistance of 190 yen, setting a new high
since the outbreak of the epidemic.
However, due to the discount structure of near high and far low, there may be a technical correction
in the far month contract after the pressure of 190 yen.
The Ichimoku balance table shows that the price entity deviates more from the short-term conversion line and the medium-term benchmark after the upward breakout, and may pull back
near 180 yen indicated by the conversion line in the short term.
In terms of trading operations, it is recommended that the near and far month spreads can continue to be held, and short-term can choose short far month contracts
around 190 yen.