Rubber futures gain 50% in 2010 on supply concerns
Supply concerns have intensified as world’s top rubber exporter, Thailand enters a low-production period known as winterering, Bloomberg reported.
Supply of natural rubber from nine major producers representing 92 percent of global output may fall 6.3 percent in the fourth quarter, cutting this year’s production growth to 5.7percent, from 6.6 percent forecast in November, according to Association of Natural Rubber Producing Countries. Output from the association’s members is estimated at 9.42 million tons this year and may climb to 9.92 million next year, the group said.
At National Multi Commodity Exchange of India (NMCE), the January contract has risen from Rs 19700 per 100 kg to Rs 20943 in December till date thereby registering a growth of 6.3%The increase in crude oil prices to $91 levels have also supported natural rubber prices. May-delivery rubber in Shanghai advanced 0.8 percent to close at 36,545 yuan ($5,534) a ton. The price has retreated from a record 38,920 yuan on Nov. 11 amid concern that China may take steps to cool inflation and economic expansion.