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Monday, August 15, 2022

Fall in Thai Rubber output likely to support prices this year

BANGKOK(Commodity Online): As falling rubber prices scare away farmers, top producer Thailand is likely to witness a 10% drop in production this year. Eearlier the output has been expected to ioncrease but the new revised outlook may lend support to prices which have been languishing in five-year lows.

The new outlook has been forecast by Association of Natural Rubber Producing Countries (ANRPC) which met in Kuala Lampur to discuss measures to tackle the plummeting prices.

I think for this year in Thailand, you won’t see a production number of 4 million tonnes,” said Paitoon Wongsasutthikul, deputy secretary-general of the Thai Rubber Association, who was in Malaysia for the ANRPC meeting. “I doubt you can get close to 3.8 million tonnes, because the declining price of rubber has discouraged people from tapping.”

Meanwhile, October futures declined to Rs. 124 ( Rs. 124.94) November to Rs. 118.82 ( Rs. 120.21), December to Rs. 118.30 ( Rs. 119.91), January to Rs. 118.25 ( Rs. 119.90) and February to Rs. 119.50 ( Rs. 120.34) on the National Multi Commodity Exchange.

In India, Sheet rubber finished steady at Rs. 122.50 a kg, after hitting an intra-day high of Rs. 123, according to traders. The grade weakened to Rs. 122 ( Rs. 122.50) and Rs. 119 ( Rs. 119.50) respectively, according to the Rubber Board and dealers.

India’s import of natural rubber is likely to rise a steep 21% to surpass the $1 billion mark for the first time during the current financial year on widening production and consumption deficit. Data compiled by the industry body The Associated Chambers of Commerce and Industry of India (Assocham) indicate India’s natural rubber import to hit $1107 million during the current financial year from $906.4 million in the previous year.

– Commodity Online

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