Rubber prices climb as floods curb production

Wednesday, November 25, 2009

According to an article in bloomberg.com by Supunnabul Suwannakij, "Rubber rallied to the highest level in almost 14 months on concern that flooding in Thailand, the world’s largest producer, will reduce supply. Futures on the Tokyo Commodity Exchange gained as much as 2.7 percent to 250 yen a kilogram ($2,804 a metric ton), the highest level since October 2, 2008. Flooding hit four provinces in southern Thailand after heavy rain started falling in the region on November 19, the Royal Irrigation Department said yesterday on its web site. “Lower supply from Thailand due to floods in southern provinces is a bullish factor driving the prices higher,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok."