Rubber futures gained at Tokyo Commodity
Exchange tracking US economic data which showed mixed trends. January futures
gained immediately after the three major producers - Thailand, Indonesia and
Malaysia announced measures to cut exports and trim production. Fundamentals
are not supportive for rubber although firm crude oil prices are providing firm
support and partly on hopes that the US, Europe and China would do more to
increase growth in their respective economies.
On TOCOM rubber futures, August series is
currently trading at ¥209 per kg, September at ¥217.4, December at ¥222.2 and
January 2013 at ¥223.8 a kg. The market is still lacking confidence, which can
be noticed in 27th August current trading for August delivery.
Earlier, rubber growers in Thailand’s
southern provinces had rallied at the Provincial Administration Office and set
a 15 day deadline for the government to resolve the declining price of natural rubber.
The top three rubber producers, under the
International Tripartite Rubber Council, will establish the mechanism to ensure
that natural rubber price remains stable and is expected to meet in the first
week of September at Bandung-Indonesia. Two major rubber importing countries -
China and India is also expected to attend this meeting.
Before these measures comes into effect, natural
rubber prices are bound to rise, as a safety measures to be taken by the
consumers having future outlook. Practically speaking is it possible for the
grower to trim production or the countries to cut export?
Read
lot more in Rubber4U – 1st September 2012 issue
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