Rubber saw 36% price drop

Fri, 12/16/2011 - 10:35
IN

Rubber futures contract for May delivery dropped by 4.1 percent to 266.8 yen per kilogram (US$3.420) at Tokyo Commodity Exchange, the lowest so far since November 10th. This adds to a total of 36 percent drop of prices since the beginning of this year, which experts believe to have caused by global economic recessions and the drop of crude oil prices.

Crude oil prices for January delivery dropped by 5.2 percent to US$94.95 per barrel this Wednesday, the lowest since November 4th.

Severe weather condition in South Thailand, one of the biggest producers of the commodity, has caused a short of supply which prevented further drop in rubber prices. It was reported, nevertheless that Thailand rubber price benchmark had dropped by 0.9 percent to 104.9 baht (US3.34) per kilogram on Thursday, December 15th.

Rubber futures contract for May delivery experienced almost similar drop by 4.2 percent to 24.395 yuan (US$3.828) per ton. (eaz)

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