COMMENTARY

Malaysian Rubber Board Daily Physical Prices - March 22



Malaysian shares ends flat with the benchmark KLCI up 0.22 point at 1509.10. A local dealer
says the market has been rangebound for most of the session, with some buying interest in battered-down lower-liners.
Maybank IB Research technical analyst Lee Cheng Hooi expects more range-trade near-term; "some semblance of stability
has returned, with the CCI, MACD and Stochastic turning positive recently," but Lee expects the market to fall in the
medium-term if a key support at 1474 is breached. Market breadth is positive with 518 advancers against 250 decliners.
Gainers include Sime Darby (4197.KU) which ends up 1.0% at MYR9.12, DRB-Hicom (1619.KU) ends 3.9% higher at MYR2.11, and
 Sunway City (6289.KU) ends up 4.0% at MYR4.42. Decliners include MISC (3816.KU) which ends 4.2% lower at MYR7.60, and
F&N (3689.KU) which ends down 1.3% at MYR15.60.

Asian Physucal Rubber up; Thai Uncertainty 17/3/2010

Asian physical rubber prices rise on cues from the strong recovery on the bellwether Tocom.
Some big Thai exporters aren't offering, citing low raw material availability, uncertainty over price volatility amid
large price swings, and recent government announcements. Exporting firms are increasingly uncertain about entering into
new deals given government calls for an export halt. "If we don't export, then what do we do? We are both producer and
exporter," says an executive at a major exporter. A trader in Sumatra says he sold so much rubber after strong gains
Wednesday that he has nothing to offer now, as raw material arrivals are low amid the low-production season. "I have to
start collecting raw material again before I can sell," says a trader in Medan. Some Malaysian producers are also not
offering; "that should be the way; some China buyers are trying to back out of deals done at higher prices earlier, they
 want to buy at the lower prices now. So they (producers) don't offer and these buyers have to fulfill their contracts,"
 says a Singapore-based dealer. Indonesia SIR20 changes hands around $4,650/ton, FOB, for nearby shipment before Tocom's
 evening session, but prices jumped up later as there was a "firm bid" at $4,750/ton, says a trader. Late Wednesday,
special grade SIR10 CV sold around $4,400/ton, FOB, for nearby shipment. For a breakdown of cash prices for all rubber
grades, keyword search ASIAN PHYSICAL RUBBER.

Rubber Fundamentals to stay strong on Tight supply - officals 17/4/2011

The current tight supply in major natural rubber producing countries will help support
prices, after the market plunged from record high levels following an earthquake and tsunami in Japan, the Malaysian
Rubber Board said Thursday.
  Rubber prices plunged earlier this week after damage to tire and automobile factories in Japan raised concerns of a
slowdown in natural rubber demand.
  Malaysia is the world's third-largest producer of natural rubber after Thailand and Indonesia. The three countries
comprise the International Rubber Consortium and account for about 70% of global natural rubber output.
  The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices
after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said.
  He added that the three members have agreed to work together on any potential price control measures, which could
include export suspension below a certain price level.
  "Japan is not a major price-determining factor where natural rubber consumption is concerned. Nevertheless, we are
closely watching the market and will take necessary measures if the need arises," an MRB official, who didn't wish to be
 named, told Dow Jones Newswires.
  He refused to disclose whether Malaysia will follow Thailand's move to set a minimum price for the commodity.
  However, officials at the Indonesian Rubber Association and MRB confirmed that they may meet with Thai exporters to
discuss measures to halt the downtrend in prices.
  Thailand's deputy prime minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than
THB120 a kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the
measure, the Bangkok Post reported Wednesday.

Thai Rubber futures settle limit - up; supply fears

RSS3 rubber on the Agricultural Futures Exchange of Thailand settles limit-up in line with gains
on the bellwether Tocom. Overall sentiment improves after Thai government and IRCo pledged support for rubber prices
yesterday. Thai Deputy Prime Minister Suthep Thuagsuban's call for a temporary export suspension also gives the market a
 boost, although a big exporter said it wass business as usual and that shipments were ongoing as they have been
committed much earlier. The benchmark AFET October RSS3 contract settles THB7 or 5.6% higher at THB132.5/kg.