Thailand approves plan to shore up rubber prices

Wed, 01/25/2012 - 18:38

The Thai government has approve a plant worth 15 billion baht (about US$472 million) to buy 200,000 tons of natural rubber from local farmers.

The plan is aimed at supporting local natural rubber prices at 120 baht per kg as demanded by farmers.

Thailand is the world’s largest rubber producer with output in 2011 reaching about 3.4 million tons, or nearly 34 percent of the 10.1 million tons produced by members of the Association of Natural Rubber Producing Countries.

On Wednesday, rubber price climbed after Thailand, the largest producer, approved a plan to buy the material at above-market rates.

June-delivery rubber gained as much as 2.2 percent to 321.1 yen a kilogram ($4,120 a metric ton).  It settled at 320.7 on the Tokyo Commodity Exchange. (rei)

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