Rubber trade remains quiet in Jakarta, S'pore<\/p>\n
SINGAPORE (Reuter): Trading in the Singapore rubber market was
\nquiet by midsession yesterday as the trade remained skittish
\nabout the currency problems of Southeast Asia, dealers said.<\/p>\n
The market was also sidelined due to concern over the looming
\ndecision by the Thai government next week on whether to sell an
\nestimated 100,000 tons in excess stocks, they said.<\/p>\n
\"The currency situation is still bothering the market. People
\nare also cautious ahead of the Thai decision next week and they
\nwere waiting for leads later today. Nothing was really traded
\nthis morning,\" a dealer said.<\/p>\n
The Thai government had postponed on Wednesday its decision on
\nselling its rubber stocks, saying the decision will be taken on
\nTuesday, Sept. 9.<\/p>\n
In Jakarta, Indonesian tire-grade SIR20 offer prices were
\nlittle changed in late trading yesterday as traders expected
\nfurther uncertainty in the market next week, traders said.<\/p>\n
\"Traders do not dare to get involved in forward trading for
\nfear of further currency movement next week. Frankly speaking,
\ntraders do not expect much change in the market sentiment to
\nhappen,\" said one trader in Jakarta.<\/p>\n
Traders said Thailand's plan to announce next week whether it
\nwould sell its excess stock did not create a big concern among
\nthem.<\/p>\n
Traders said SIR20 were quoted at 41.00 fob Medan for
\nSeptember shipment, 41.25 fob Palembang, Padang and Surabaya and
\n40.75 fob Pontianak and Jambi.<\/p>\n
In Bangkok, currency turmoil and news of the possible sale of
\nThai government stockpile rubber next week has put pressure on
\nprices, traders said yesterday.<\/p>\n
But the downside was seen limited by tighter supplies caused
\nby recent floods in southern Thailand, the country's major
\nrubber-producing region, they said.<\/p>\n
\"With the currency volatility across the region, and in major
\nrubber-producing countries such as Thailand, Indonesia and
\nMalaysia in particular, buyers were sidelined, awaiting prices to
\ncome down further,\" said a Hat Yai-based trader.<\/p>\n
\"The rubber woes were exacerbated by the imminent sale of
\ngovernment stocks. Although the government is yet to reach a
\ndecision on the matter, the market is already convinced that it
\nwill sell part of its stock,\" he told Reuters.<\/p>\n
Thailand's National Rubber Policy Committee said it will
\ndecide whether to sell rubber from its stockpile on Sept. 9.<\/p>\n
A government official said some 10,000-20,000 tons of the
\n100,000-ton stock of smoked and unsmoked rubber sheets may be
\nreleased to raise revenue and spare the government from having to
\nuse money from state budgets to boost incomes of rubber
\nsmallholders.<\/p>\n
Thai benchmark RSS3 for October shipment was indicated around
\n87.00-88.00 U.S. cents a kg FOB Bangkok. January\/February was
\nquoted around 93.00-95.00 U.S. cents on the same basis.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rubber-trade-remains-quiet-in-jakarta-spore-1447893297",
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