Tocom Rubber Lower; 2014 Production To Fall By 6%-8%

 

17 March 2014, 13:58 SEAST

 

Tocom rubber futures settle 2.5% lower due to negative sentiment on high stockpiles, even though an excessively dry wintering season this year is hitting production in Thailand, Indonesia and Malaysia, which may decline by 6%-8% this year, says IRCo in a statement on its website.

 

The Association of Natural Rubber Producing Countries meanwhile forecast a 6.7% increase in Malaysia’s annual production, while February production in all three International Tripartite Rubber Council countries also increased; the association did not provide 2014 forecast for the annual output from Thailand and Indonesia.

 

IRCo adds in the statement that it is setting up a committee to boost consumption of natural rubber. Benchmark August rubber settles Y5.9 lower at Y234.3/kg, off the intraday low of Y234.1/kg.