Rubber drops to 3-week low
- Published: 20 Feb 2013 at 11.09
- Online news:
Rubber futures on Wednesday declined to a three-week low on speculation shipments from Thailand, the world's largest producer, may increase as the nation is expected to end a price-support program as planned.
The contract for July delivery fell as much as 0.7% to 312.5 yen a kilogramme (US$3,335 a metric tonne), the lowest level since Jan 30, before trading at 313.7 yen on the Tokyo Commodity Exchange at 10.24am. The drop pared this year’s gain for the most-active contract to 3.7%.
The Thai government will review a program to support prices by purchasing the commodity from farmers when it expires at the end of March, Deputy Agriculture and Cooperatives Minister Yuttapong Charasathien said on Tuesday. Thailand also agreed with Indonesia and Malaysia last year to cut exports by a combined 300,000 tonnes in the six months through March to bolster prices.
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