Thursday, March 17, 2011

Tocom Rubber Higher As Physical Market Gains

Tocom RSS3 rubber futures rise as prices rise in the Thai physical market Thursday, with USS3
 prices breaching the THB120/kg minimum levelvset by the government. The world's largest producer, Thailand is also
taking steps to shore up natural rubber prices amid a price slide in the last month; industry officials are expected to
meet government leaders soon to discuss measures. "If physical prices go up more, I think Tocom will gain further," says
 a trader in southern Thailand. Thai Rubber Association chairman Luckchai Kittipol said earlier this week that
fundamentals point to Tocom rubber moving to Y400/kg "soon." The benchmark Tocom August contract trades Y28.2 higher at
Y397.2/kg.

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