Tocom rubber futures settle 1.5% higher in line with gains in Shanghai rubber futures and Asian equities. Traders continue to watch the Chinese market after last week’s Lunar New Year public holiday. A major exporter in Thailand says trading activities will likely return to normal only next week after the traditional 15 days of festivities are over; he says “many [Chinese buyers] are keen to bid, but their minds are still in holiday mode and have not caught up with the price gains in the last few weeks–their bids are just far too low.” Benchmark July rubber settles Y4.6 higher at Y314.9/kg, near the intraday high of Y315.3/kg.

Source: Dow Jones

Physical prices of Thai USS3 rubber are little changed at THB113.15-THB113.29/kg, versus THB112.81-THB113.89/kg Thursday, as some suppliers’ eagerness to sell rather than wait for a government purchase program offset strong demand. The Thai government Tuesday decided to intervene in the market to support prices around THB120/kg. However, the purchase program involves time-consuming documentation and some suppliers have decided to sell on the open market at moderately lower prices, a natural rubber broker in Hat Yai says. Outside the central markets, factories are paying up to THB116/kg, the broker says. Sales in Thailand’s three main central markets total 60.25 tons versus 36.4 tons Thursday: 8.9 tons in Hat Yai, 17.35 tons in Surat Thani and 34 tons in Chandee.

Source: Dow Jones