Rubber moves forward to four-month high as exports cut


This year’s loss has been erased as rubber mounted up to its four-month high, after the largest producers of rubber have cut their exports since 2009, leading to a reduction of supply.



The Mach-deliver of rubber have gained 3.4% to 269.3 yen a kg., the highest level since May 30, before it was traded at 269 yen on the TOCOM at 11:40am. This is the most-active contact that has been gained this year.



The boost of rubber can be credited to the agreement to the three world’s largest producer of the commodity used to produce tyres, rubber, which are Thailand, Indonesia and Malaysia. The three countries which takes 70% of the global market share agreed to cut their exports by 300,000 tonnes starting yesterday.



The producers of rubber are cutting their sales to improve the price of rubber that reduce to 51% since February of last year which was caused by the weak economic growth and the supply glut. After the producers have reduced their shipments in 2009, the futures have doubled that year. The latest barrier comes from the Federal Reserve of the European Central bank which promised to purchase more debts to improve the growth of the economy. A Singapore-based rubber group has predicted that there will be a record demand in 2013.



Last Monday, the rubber free-on-board has gained 2.6% to 100.15, the highest level it has reached since July.



The Shanghai Futures Exchange is closed for a week due celebrate the week-long National Day Holiday of China. (PRA)