Saturday, April 17, 2010
World Rubber market update - Good time for Sri Lanka
April 16 (Bloomberg) -- Rubber futures for delivery this month climbed to an all-time high as cash prices in Thailand reached a record amid concerns that political turmoil in the largest exporting country may disrupt supplies.
Futures for April delivery in Tokyo gained as much as 7.8 percent to 412.10 yen per kilogram ($4,451 a metric ton) before settling at 411.90 yen. Rubber for September delivery, the most- active contract, rose as much as 1.1 percent to 338.5 yen, the highest level since July 15, 2008. Cash prices in Thailand, the largest exporter, have been rising to records since the start of April as supplies drop during low-production period.
“Thailand’s political crisis has aggravated concerns that supplies will be tighter amid strong demand from China and a recovery in cars in major economies,” said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co.
Weekend clashes between Thai security forces and anti- government protesters were the deadliest in 18 years, killing 23 people and injuring more than 800. The demonstrators remain camped in the capital’s business district demanding the government dissolve the parliament.
April-delivery contract advanced as much as 29.90 yen to 412.10 yen per kilogram, the highest level since the futures began trading in December 1952, Tokyo Commodity Exchange said in a statement today. The previous record was 386.80 yen on Feb. 13, 1980, the exchange said.