Tocom Rubber Drops; No Intervention Yet On Outlook
21 April 2014, 14:03 SEAST
Tocom rubber futures settle 2.4% lower after hitting a fresh four-and-a-half-year low amid cut-loss selling and a decline in Shanghai rubber.
IRCo chief executive Yium Tavarolit says the major producing countries of Thailand, Indonesia and Malaysia have discussed the selloff, which they are attributing to global macroeconomic uncertainties.
“At this time, we are not considering any market intervention as we have to accept current market fundamentals,” says Mr. Yium.
He says member countries are urging producers to manage production and sales in the current market. He also warns of El Nino concerns later this year that may affect yields.
Benchmark September rubber settles Y5.0 lower Y201.4/kg, off the intraday low of Y200.5/kg.