Tocom rubber futures settled lower after
market participants were disappointed about the Thai government not allocating additional
funds to its price intervention plan. On TOCOM rubber futures, as of 29th August
at 02:35 JST, September series were trading at ¥219.8 a kg, October at ¥220.4,
December at ¥222.6 and February 2013 at ¥224 a kg.
An intervention scheme launched in January
has failed to raise unsmoked rubber sheet (USS3) to anywhere near the targeted
price of 120 baht per kg and the government has bought only a fraction of the
planned 200,000 tonnes. For the time being, Thailand cabinet has rejected the
plan to spend another 15 billion baht on buying rubber to boost prices. Two
billion baht from the budgeted 15 billion baht has been left for further buying.
On 27th August, the Thai Rubber
Association said the export ban in Thailand would take effect from October 2012.
Now demand for rubber has dropped due to
slowdown in the euro zone and other countries. Worries about defaults by
Chinese buyers have added to the gloom. In the current scenario there seems to
be no positive news and Tocom prices may fall further down during the week.
Read
lot more in Rubber4U – 1st September 2012 issue
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