The major natural rubber producing countries
have set up a price support mechanism to prop up the rubber prices, if the
price falls below $2.70 per kg, which was fixed when officials from the
Southeast Asian countries met in Thailand to review measures to support the
market.
Physical prices are well above $3.00 per kg
after the three countries agreed in August to cut exports and replant trees to
shore up the market. Today, RSS4 grade rubber in India closed with a negative
note around `.195 a kg and the price of RSS3 grade closed at `.173.58
per kg at Bangkok. In the domestic futures market, the October series were trading
at `.192.75, November at `.187.80, December at `.185.65
and January 2013 at `.186.40 a kg on the National Multi Commodity Exchange. On
the Tokyo Commodity Exchange, October futures series closed at ¥264.2 per kg
and March 2013 at ¥269.8 per kg.
Traders cast doubt on the effectiveness of
the scheme, the market has gone up on the occasion of announcements but in fact,
prices are being directed by crude oil and the global economic scenario.
Read
lot more in Rubber4U – 15th October 2012 issue
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