GMG Global   

Rubber prices

Haiz...even lower today. Bought at $0.11

 

Falling as expected.

 

I think it'll fall in the short term. Medium term picture is not so clear.

 

Is this stock still worth holding?

 

Asian rubber prices drifted lower in thin trade on Tuesday, following a decline in Tokyo futures, and buyers waited on the sidelines for prices to drop further, dealers said.



At 0618 GMT, the benchmark January 2007 contract on the Tokyo Commodity Exchange, which sets trends for global rubber prices, was down 1.5 yen per kg at 250.3 yen.



"We expect the market to drop further on weak sentiment," a dealer said. "Overall, the weather in the main producers is good. I see more supplies are coming in," another dealer said, referring to Thailand, Indonesia and Malaysia, which produce 60% of the world's natural rubber output.



In Indonesia, where the wintering dry season is over, prices were down to 17,500-18,000 rupiah per kg on Tuesday from last week's 20,000 rupiah. In the wintering dry season, temperatures soar,leaves fall and latex declines, on average by 30%.



Thai benchmark unsmoked rubber sheet grade 3, or USS3, the raw material for export-grade rubber, was down slightly from Monday's 72 baht. The price of USS3 was down 30% from a historic high around 102 baht in late May, when unusual wet weather disrupted tapping and cut domestic supplies.



"There was a short shower yesterday evening in some growing areas in the south. But that was good for the trees as it will help them produce more latex," a Thai dealer said. "Short showers are good. Prolonged rain is no good for the trees or for us," another dealer said.