Tocom rubber futures settle lower, extending losses in the last half hour of trade after market participants were disappointed that the Thai government didn’t allocate additional funding to its price-intervention plan. Absent a positive catalyst, Tocom prices may fall further to Y215-Y220/kg, after rebounding by around 10% from near a three-year low in the past two weeks, a Bangkok-based trader says.
The Thai Cabinet agreed to continue with the government’s price-intervention plan, Thai Deputy Agriculture and Cooperatives Minister Nattawut Saikuar said earlier in the day; he didn’t mention additional funding. Some market participants had expected the Cabinet to double the total allocation to THB30 billion. The previous benchmark contract, January, settles Y3.6 lower at Y225/kg; the new benchmark February contract opened at Y230/kg and settles at Y226.1/kg.
Source: Dow Jones
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