Tocom Rubber Falls; Downside Limited, Y250/Kg Support

26 Sep 2012

Tocom RSS3 rubber futures fall with prices moving in a tight range as global growth concerns persist and as the yen remains strong.  Tocom is supported by a collective export cut by Thailand, Indonesia and Malaysia, which starts Monday; a Tokyo-based broker tips key support at Y250/kg.   Benchmark March rubber is last down Y1.3 at Y254.1/kg, after moving in a tight Y251.3-Y254.3 band.

Tocom Rubber Higher; Y220/Kg Resistance

23 Aug 2012

Tocom RSS3 rubber futures are higher, taking cues from gains in Shanghai rubber after the opening; prices are moving in a tight Y217.8-Y220.2/kg range and is now testing key resistance at Y220/kg.   A trader in Thailand says Tocom is likely to move in range today amid a lack of strong cues and on fading optimism from price-support measures introduced by major producing countries;  "there are still many bears who are looking to depress prices in the market." Benchmark January rubber trades Y1.2 higher at Y219.8/kg.

3 nations withdraw 450,000 tonnes of rubber

2012/08/17

Malaysia, Indonesia and Thailand have taken two measures that will withdraw a total of 450,000 tonnes of natural rubber (NR) from the market in order help the rubber price recover.

In a joint statement, the countries said they had finalised the mechanism for the implementation of Agreed Export Tonnage Scheme under which they would withdraw exports of 300,000 tonnes of NR.

The statement said the countries also agreed to accelerate the replanting programme of 100,000 hectares which would result in a further reduction of exports by 150,000 tonnes.

"We are optimistic with joint implementation of these measures, the rubberv price will recover and continue to be fair and remunerative to all smallholders and other stakeholders in the natural rubber industry," it said.
The statement said the implementation would be closely monitored by the International Tripartite Rubber Council (ITRC) Monitoring and Surveillance Committee.

It said the three countries were concerned about the recent drop in NR prices which had a direct effect on the income of their rubber smallholders.

"This is despite the fact that the demand for natural rubber remains strong with low stock level," it said.

The drop in price was mainly contributed by negative market sentiment caused by various other factors including uncertainties in global economic growth, it said. -- Bernama