Thailand ‘Very Satisfied’ as Rubber Climbs to Record

March 31 (Bloomberg) -- Thailand, the world’s largest rubber exporter, is “very satisfied” with prices that have surged to a record in local-currency terms on strong overseas demand and limited supply, a deputy minister said.

“Prices have risen on their fundamentals,” Supachai Phosu at the ministry of agriculture and cooperatives said in a phone interview today, without giving a forecast. “The government doesn’t need to build up inventory and will leave it to exporters to manage their stockpiles,” Supachai said.

Rubber priced in baht reached an all-time high this week, while the yen-denominated contract in Tokyo has surged to the highest level since 2008, buoyed by increased demand as the global economy moves out of recession. Drier-than-usual weather in southern Thailand, which has coincided with the annual low- output season, has also spurred the rally.

The government’s view will “continue to support domestic prices to rise further,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said from Bangkok.

Rubber on the Tokyo Commodity Exchange has risen 12 percent this year, touching 314 yen a kilogram yesterday, the highest price since September 2008. The September-delivery contract settled today at 308.3 yen ($3,310 a metric ton).

State Fund

“The government is very satisfied with rubber prices,” Supachai said from Bangkok. An 8 billion baht ($247 million) state fund that may be used to shore up local prices by buying latex from farmers “will be used when prices fall,” he said.

The May-delivery contract on Thailand’s Agricultural Futures Exchange rose to 114 baht a kilogram, the highest price since the bourse was set up in 2004, according to a statement yesterday. The auctioned price of ribbed smoked sheet 3 was a record 112 baht a kilogram today, according to Bloomberg data from the Rubber Research Institute of Thailand

The agriculture ministry has asked the state-owned Rubber Estate Organization, which promotes output and exports, to stop building up inventories, said Supachai. The body holds about 500 tons, he said. That’s less than 1 percent of forecast output.

Production this year may total 3.1 million tons, with exports of about 2.85 million tons, said Supachai. The figures are right in line with Jan. 13 forecasts from the nation’s Office of Agricultural Economics.

AMarch 31 (Bloomberg) -- Thailand, the world’s largest rubber exporter, is “very satisfied” with prices that have surged to a record in local-currency terms on strong overseas demand and limited supply, a deputy minister said.

In INDIA:Spot rubber ends firm

Kottayam, March 31

Spot rubber closed unchanged on Wednesday. According to sources, the market was in a holiday mood ahead of the Easter holidays. Sheet rubber finished steady at Rs 157 a kg amidst dull volumes while major consuming industries continued to remain inactive during the last day of the financial year.

Futures improve

The futures improved marginally with April rising to Rs 157.20 (156.86), May to Rs 160.60 (159.71), June to Rs 160.89 (159.75) and July to Rs 159.55 (158.91) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). RSS 3 weakened with the April futures dropping to ¥329.3 (¥331.8), May to ¥323.5 (¥327.8), June to ¥317.7 (¥320.3) and July to ¥310.8 (¥315.8) a kg during the day session on Tokyo Commodity Exchange. RSS 3 slipped to Rs 157.17 (157.52) a kg on Singapore Commodity Exchange (SICOM) and to Rs 158.05 (158.05) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 157 (157); RSS-5: 155.50 (155.50); ungraded: 154 (154); ISNR 20: 154 (154) and latex 60 per cent: 100 (100).

Rubber tappers' banks planned near plantations

Kottayam, March 31

The Rubber Board has drawn up a scheme to set up rubber tappers' banks at various plantation areas to overcome the shortage of rubber tappers and improve their living standards.

Tappers banks, which are self-help groups, will be setup under the auspices of the rubber producers' societies.

The first tappers bank was inaugurated by the Rubber Board Chairman, Mr Sajen Peter, at Poothrukka Rubber Producers Society in Ernakulam District.

At every unit, 20-30 trained tappers are available and to get their services, prescribed fee should be remitted.

The banks would ensure job permanency and reasonable wages.

The tappers would get special incentives also from the extra income gained by the growers through tapping.

The tappers could join the public provident fund scheme and to ensure attractive savings, they will be included in the Group Life Insurance-cum-Terminal Benefit Scheme ( GLICTB). The Board has also arranged a number of financial benefit schemes for the tappers to get more income in future. They could also join the Personal Accident Insurance Scheme implemented as part of the price stabilisation fund.