Rubber has lost 33% on the Tokyo Commodity
Exchange this year from a peak due to Europe's debt crisis raising concern that
demand may decline. Today, January & May delivery contract closed at 264.7
yen & 276.9 yen a kg respectively, on Tocom. Representatives from the three
governments - Thailand, Indonesia and Malaysia, are meeting to discuss
stabilising prices and proposed to establish a physical market.
There’s a desire from the governments of the
three countries to set up a market as soon as possible that would be based on
the real supply and demand fundamentals. Establishment of a market would help
producers trade with more transparent and reliable prices. The contract would
most likely trade in dollars, said Tjahjono Budiarto Tjandra, chairman of the
Committee on Strategic Market Operations at the International Rubber Consortium
Ltd., in Bali.
Establishing a physical market may involve
the Indonesia Commodity & Derivatives Exchange, the Agricultural Futures
Exchange of Thailand and the Malaysia Derivatives Exchange.
Read
lot more in Rubber4U – 15th December 2011 issue
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