Tocom Rubber Flat As Cartel Pricing Kicks In


15 October 2014, 08:56 SEAST


Tocom RSS3 rubber futures are flat amid weak crude-oil prices although the downside is limited due to efforts by producing trade associations and governments to support the market.


The International Rubber Consortium says on its website that the group met representatives from member countries of the Association of Natural Rubber Producing Countries last Friday and that the producing countries have agreed to not sell rubber at levels lower than current prices.


“This action would prevent the smallholders from suffering further losses as the current price is lower than the cost of production,” says IRCo.


Benchmark March rubber trades Y0.4 lower at Y183.8/kg.