Thai cabinet approved
a Natural Rubber Policy Panel proposal of 15 billion baht for stockpiling of
natural rubber with an aim to boost the commodity’s price to 120 baht per kg. 5
billion baht will be given to state-owned Bank for Agriculture and Agricultural
Cooperatives to provide financial support to farmers' organisations operating in
rubber buying related businesses. The remaining 10 billion baht will be handed
out to the Rubber Estate Organisation to directly purchase rubber from farmers
and keep it in state warehouses.
Both organisations
will buy rubber from producers for processing and wait for a good timing to
sell it at an appropriate price. Thai rubber price had dropped to its lowest at
Bt85 a kg., at the end of 2011, due to the global economic slowdown. The Thai
move pushed rubber prices higher and currently it stands at Bt107 a kg. Price
could rise much higher than this level when the Chinese buyers come back from a holiday.
The TOCOM benchmark
contract for June delivery stood at 314 yen at 0621 GMT after rising as high as
315.3 yen per kg, up from Monday’s settlement of 306.0 yen.
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