Asian Rubber Futures End Up; Thailand Unlikely To Release Stocks
26 May 2014, 17:52 SEAST
Asian rubber futures settled higher Monday in slow trade with the upside capped because of the prospects of a large surplus this year even with the low-production season.
Benchmark October natural rubber on the Tokyo Commodity Exchange settled 0.8% higher at Y206 a kilogram with prices gaining some confidence from a statement from the International Rubber Consortium that Thailand was unlikely to sell its large stocks immediately.
It is unlikely Thailand would sell its 200,000 metric tons of rubber stocks “as the decision on the release needs to go through the [military junta] for its approval,” IRCo chief executive Yium Tavarolit said in an announcement on the organization’s website.
The IRCo is an intergovernment organization which member countries are large rubber producers Thailand, Indonesiaand Malaysia. It aims to keep rubber prices fair for both producers and consumers through the management of supply and exports.
The civilian government in Thailand earlier this said month it would sell stocks acquired through state-funded price-support programs. The announcement caused prices to fall.