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Farmers earn the price of rubber 100 per kilo, traders compete for futures trading. After a month of rebounding from 20-25 baht, the storm collapsed, the country of rubber producers was unable to cut, and major buyers have rebounded after COVID-19. More orders The glove factory rushes to buy latex to stock up until the “exporter” price shows a loss, pre-sales of just 50 baht / kg, the government smiles. Don’t pay income insurance. Don’t worry, no tires are delivered
After the domestic price of rubber fell to just 3 kg 100 baht at the beginning of the year. Rubber prices have recently rebounded amid the situation where the world is facing the second round of the coronavirus outbreak in just one month. The price of third-class raw smoked rubber sheet in the country has risen to 82 baht per kg, while latex at the factory front has moved up to 70.50 baht per kg, in line with demand. of the most rubber glove factories. Multiple As a result, rubber producers began to hope that By the end of this year, you may be able to see the price of 1 kg of rubber, 100 baht.
Hit 5 collapse tigers together, low price
Mr. Nakorn Sikwirapat, Governor of the Rubber Authority of Thailand, said that the factor affecting the price of rubber comes from the weather in rubber producing countries with heavy rains. Tires from all countries are released less on the market. If compared to rubber stocks, natural rubber production in October was 441,000 tons, or decreased compared to the same period in 2019 and during this period the delivery deadline of the rubber futures contract was still met. Cause the performance of rubber products to lead to inadequate demand The world rubber production is expected to grow at a rate of 3 to 6% per year, while the world demand for rubber will grow at 4 to 5% per year.
“There is a growing use of small cars in China. As a result, the need to produce tires increased 3 times normal, the Chinese economy grew by 4.9%. Which is the world’s largest user, has returned Normally during October to December of each year, rubber production in Thailand will be massively produced around 550,000 tons, but this year the market output is only 441,000 tons, which means that demand for rubber is approximately 50,000 tons higher than production, resulting in a price chase. It went up Exporters fear that rubber is not enough to export, more than 90% of them already have derivatives, “said Nakon.
Mr. Praphan Bunyakiat, Chairman of the Board of the Thai Rubber Authority (RAOT) said that RAOT is preparing to invite rubber exporters, including a group of five tigers, to discuss next week. In order not to have a problem in the supply chain of the rubber industry The price of rubber from exporters.
After the price of rubber rose a lot In addition, rubber exporters were affected by the COVID-19 outbreak. Earlier in the year, I requested to review the Cabinet (Cabinet) resolution to adjust measures to subsidize interest rates for rubber exporters in the amount of 20 billion baht of the original low-interest 3% loan, volume only of rubber exports that increased in the year. You are adding an option to a loan with only 2% interest
The state does not have to pay for tire insurance.
Mr. Lakchai Kittipol, Director of Thai Hua Rubber Company Limited, said that the rapid rise in rubber prices was due to the decline in rubber production both at home and abroad. The average price is 76-80 baht per kg, which means that the government does not have to pay insurance for rubber revenues. Which will save about 30 billion baht of budget.
“The price of rubber is going up very quickly. Rated the highest in 7 years, despite the fluctuation, but it’s good for farmers. Ask the state to stay at the 80 baht / kg price level. I think When production is low, the price is usually high. Buyers will speculate. For Thai Hua, the full year of rubber sales is expected to increase 20% from Thai Hua’s current share of 90% of the export market and 10% of the domestic market “.
While Sri Trang Company Agroindustry said Vietnam was hit by flooding from previous storms. Indonesia stopped touching rubber It is expected that in 2020 the world export market will be negative -5.2%, with 12.9 million tons, with Thailand being the first producer with 33%, while Indonesia has 20% and Vietnam It currently has an 8% share of the world market. While Malaysia, China and India have the same 5% share per country, now rubber prices are increasing. But I have to wait and watch the weather closely. If the heavy rain cannot be taken advantage of, the price will move more, but will it reach 100 baht per kg? “Please don’t give your opinion”, but admit that the price of rubber affects the cost of raw materials in the production of rubber gloves.
Earn 1 kilometer 100 baht
Mr. Kampanat Wongchuwan, Manager of Than Nam Thip Farmers’ Group The largest institute of foreign producers of export rubber processing in the southern region believes that although the price of rubber fluctuates according to the market mechanism. But it is likely to continue to rise until the first quarter of 2021 and the price of rubber is expected to rise to 100 baht / kg, causing exporters who signed a low-priced futures contract to suffer heavy losses.
“The price of rubber on October 29, the wing is more than 1 baht according to the futures market, but today (October 30) the price has risen again. I think if the price of rubber is between 60 and 80 baht / kg, it is considered very good. “
However, the market needs a lot of rubber. But the amount of rubber produced in Thailand is small. Also, in the south, there is also a rubber leaf fall disease. Causing the fresh latex to have a shortage of around 50%; the rubber market of the Thailand Rubber Authority the 3 markets (Songkhla – Nakhon Si Thammarat – Surat Thani) during the rubber peak period, the trade volume is about 500,000 kg to 1 million kg or about 500- 1000 tons / day at a time Traders with old tires, deteriorated rubber, mold – stocks, both cup-shaped rubber – in block, with about 10,000 tons, they sell again at a profit of 10-20 baht / kg, because now the market has bought everything to go. Renovate
Sompong Rachasuwan, Chairman of the Rubber Producers Group, Nathawi District, Na Thawi District, Songkhla Province, said that rubber traders had to find rubber to deliver on futures contracts that expire in November, so they had a competition to buy rubber.
“Rubber prices will remain high until the first quarter of 2021, which is the peak of rubber. And the price will throw another wave. It is expected to adjust to 30-40 baht / kg, I think how to stabilize the price of rubber at a risk-free price of 60 baht / kg. “
While Thosaphon Kwanchod, president of Rubber Farmers Network and Oil Palm Plantation of Thailand (CPA), saw that the increase in the price of rubber was due to the high price of synthetic rubber. Because synthetic rubber is processed from petrochemicals.
Isan Shock 100 years, never having
Mr. Thanakorn Chin Klang, Chairman of the Natural Rubber Agricultural Base Group, Non Suwan District, Buriram Province, spoke about the rubber situation in the Isan region. For alleged rubber producers “What is happening now?” Smoked latex and rubber sheets are in very similar demand on the market. The price went up last week, called “in 100 years, it never happened like this” since normal prices rose by 10-20 satang at a time, but today, the central market price in Songkhla is more than 7-10 baht / kg. Which is believed to be caused by 3 reasons which are
1) The storm occurred quite frequently on the Vietnam side. Vietnam rubber production disappears 2) The COVID outbreak in several countries, especially neighboring countries. As a result, no rubber extraction workers entered Thailand 3) There was demand for latex to make rubber gloves in recent months. “Right now the price is not moving much, it is rubber in cup pieces (DRC 50%) in the Isan region, 23 baht per kg, I take an example from 2 weeks ago, the smoked rubber sheet cost 56 baht at 66 baht. And in just 3 days, rising again to 80 baht / kg.
As a result, traders or entrepreneurs in China and Singapore have millions of rubber futures contracts to compete for raw materials, a trade that has never happened before, ”Thanakorn said.
However, there were news reports that Rubber Traders – Agricultural Institutions – Rubber Groups – Rubber Cooperatives – Community Rubber Companies Now compete to buy rubber. By offering to buy a “higher” general market price of around 00.50-1 baht / kg, for example the price of rubber 82.50 baht, will give 83-83.50 baht / kg, which is a price out of market. For fear of breaching the contract, tires are not delivered to the buyer
“Many rubber trading groups are believed to have futures traded at a price of only 50 baht / kg. At this point, there is no rubber to deliver under the contract. They have to rush to buy rubber. The price is above 80 baht. per kg. Causing many losses to occur “
BAAC look at next year, the price is still 60%
Mr. Satchayojchaikarn, Deputy Director of the Research and Development Center The Bank for Agriculture and Agricultural Cooperatives (BAAC) said that rubber prices in the last quarter of this year were 57-67 baht / kg with a median value of 57.63 baht / kg and if the average in the fourth quarter of 2020, the price of rubber will be 57.05 baht / kg, or an increase of 54% compared to the same period of the previous year when the price of rubber was only 36, 95 baht / kg.
“Price support will come from the storm. Fewer rubber bumps Global market demand for rubber increases as COVID-19 declines The need for latex to make medical gloves. And the government encourages the use of tires to make the main guide according to the plan that requires 350,000 tons of tires per year.
The rubber price trend in 2021 still has a chance to increase. In the first half of 2021, rubber prices will increase by 60% compared to the same period of 2020 due to the demand for rubber in China. But you still have to watch out for rubber prices on the Tokyo agricultural futures market, which is still moving in the direction of 250-300 yen / kg, which is an important indicator.
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