Rubber futures and physical rubber markets in Asia continued improving throughout the week after the five Rubber Trade Associations of Thailand, Indonesia, Malaysia, Vietnam, and Cambodia on 10 October 2014 in Melaka, Malaysia pledged to not sellling rubber below the cost of production. In addition to that, the Thai Government on Tuesday approved a 58 billion baht ($1.8 billion) plan to implement a series of assistance to rubber farmers and to improve rubber prices in the country.
On the fundamental front, a weaker yen against the dollar, a steady purchase of rubber by Chinese importers and other tire makers, a continued decline in rubber stocks in Qingdao, Japan and major producing countries, a return of investors’ confidence, and an improvement in technical chart also encouraged investors to cover their short positions on rubber futures in the region during the week.
As market fundamental and sentiment have been improving since early October 2014 and rubber supply in Southern Thailand, Northern Malaysia and Northern Sumatra of Indonesia and even in India from the beginning of the year to September 2014 was lower than the same period of last year mainly caused by erratic weather, it is expected that rubber prices will continue improving until the dry wintering season in the first quarter of next year.
– IRCo
![[Geojit Comtrade] Daily report on Natural Rubber: October 29, 2014](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-october-29-2014.png?resize=75%2C75&ssl=1)
