Thailand will sell its large stock of natural rubber “as soon as possible” before the peak production season, the government said according to the Bangkok Post.
“As there is no rubber output in the market at this time it is necessary for the government to release the stockpile as soon as possible before the new harvest season starts later this month,” Agriculture Minister Yukol Limlaemthong said in the report.
Thailand is the world’s largest producer and exporter of natural rubber accounting for one-third of supply. Between late February and the end of May is low-production season when latex output slows to a trickle.
Quality of the 220,000-metric-ton stock will deteriorate over time affecting prices. Storage costs the government 20 million baht a month.
The Rubber Estate Organization is managing the stocks, the report said.
The government plans to sell the stock acquired in state-funded price-support programs over the past two years, Mr. Yukol told The Wall Street Journal in May. Rubber prices fell 6% following that statement.
Benchmark international rubber prices on the Tokyo Commodity Exchange fell 1.7% in after-hours trading Friday to Y203.8 a kilogram.
– wsj.com
