Rubber sank to its lowest level in more than five years amid speculation that calls to restrain supplies from the world’s two biggest producers wouldn’t be enough to offset slowing demand. An industry group in Thailand asked members not to sell below $1,500 a metric ton, about the level now on the Singapore Exchange. The government also put on hold a stockpile disposal, while Indonesia urged producers to refrain from hasty sales as the market heads for a fifth year of glut. Suppliers should weigh whether to purchase futures, said Masayo Kondo, president of Commodity Intelligence Ltd., a research company in Tokyo. “Thailand needs to take additional measures to stem the price decline,” said Kondo. “The government should consider seriously buying futures as it costs less than buying physical rubber. Fundamentals alone cannot explain this rapid fall.” Futures in Tokyo plunged 36 percent this year as economies slowed in Europe and China, the top consumer, weakening demand. Italy cut its growth forecast yesterday, German manufacturing shrank and euro-area factories lowered prices in September by the most in more than a year. China’s manufacturing stayed subdued last month as an official gauge was unchanged. bloomberg/news/2014-10-02/rubber-slumps-to-2009-low-as-producers-seen-needing-to-do-more.html
Posted on: Fri, 03 Oct 2014 08:21:35 +0000
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