RI, Thailand, Malaysia plan base rubber price<\/p>\n
BANGKOK (Reuters): Thailand, Indonesia and Malaysia have
\nagreed to jointly set a minimum rubber selling price, Thai Deputy
\nAgriculture Minister Arkhom Engchuan said on Tuesday.<\/p>\n
\"The joint plan is to prevent buyers from further suppressing
\nprices that each country separately sells at in the world
\nmarket,\" Arkhom told Reuters in an interview.<\/p>\n
The Thai minister was expected to hold a press conference on
\nWednesday at 0300 GMT to formally announce the plan.<\/p>\n
According to the pricing plan, the three countries would set
\nup a joint committee that will set common selling prices on a
\ndaily basis to be used as a benchmark, Arkhom said.<\/p>\n
\"We will set up a minimum selling price, in dollar-denominated
\nprices, so that each country cannot sell at lower prices than
\nthis,\" Arkhom said.<\/p>\n
On Tuesday, Indonesia's SIR20 was quoted at 56 U.S. cents per
\nkg for August shipment, while Malaysia's SMR20 was quoted at
\naround 58 cents, and Thai STR20 was quoted at around 60 cents for
\nthe same shipment, traders said.<\/p>\n
Thailand, Indonesia and Malaysia account for almost 80 percent
\nof the world's production.<\/p>\n
Thailand is the world's top rubber exporter and Indonesia is
\nthe second.<\/p>\n
The three countries are in talks on how to boost ailing rubber
\nprices, which last year tumbled to their lowest levels in 30
\nyears to an average of around 23 U.S. cents\/lb, mainly because of
\na glut in supply and weak demand.<\/p>\n
Prices are now around 25-26 U.S. cents\/lb.<\/p>\n
Arkhom said private exporters' cooperation was needed if the
\nminimum price scheme was to work.<\/p>\n
\"We have to ask for help from private exporters on this, and
\nif they refuse to cooperate, we might need sanctions,\" Arkhom
\nsaid, but did not elaborate.<\/p>\n
Meanwhile, senior officials from the three countries were
\nworking on details for the pricing plan, he said.<\/p>\n
The plan was expected to be ready for a ministerial meeting of
\nthe three countries in September, where it would be formally
\nimplemented, Arkhom said.<\/p>\n
Meanwhile, coffee prices leapt 4.7 percent in London on
\nMonday, rebounding from Friday's seven-year low of US$826 a ton
\nover weather worries in Brazil, the world's largest coffee
\nproducing nation.<\/p>\n
On the London International Financial Futures Exchange
\n(LIFFE), robusta coffee prices rose to close sharply firmer on
\nMonday and near the day's highs. September futures last traded
\n$32 a ton higher at $858, just off the day's peak of $864.<\/p>\n
\"The market's firmly driven by the weather. It's mainly
\nspeculative buying and dealer short covering,\" a trader said.<\/p>\n
In New York, September arabicas were 3.80 cents a lb up after
\nWeather Services Corp. (WSC) said early on Monday that cooler
\nweather would move into Brazil's coffee areas.<\/p>",
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