Thai rubber growers to cut supply 25 percent

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Thai rubber growers to cut supply 25 percent
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Friday, November 18, 2011
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! z! Q5 \$ P4 ]; t$ wBangkok, Thailand - The Bangkok Post reports that Thai Rubber growers in the southern provinces have agreed to reduce supply by at least 25 percent in an attempt to stabilize prices that have been declining steadily for two months. Under the agreement, planters will reduce tapping to 15 days a month from 20 during the high season, said Wit Pratuckchai, director-general of the Office of the Rubber Repainting Aid Fund. Delaying output entering the market is among several measures intended to shore up rubber prices. They were agreed on at a weekend meeting among growers in 14 southern provinces, traders and agriculture officials. Prices of natural rubber have fallen to about 81-85 baht this week for a kilogram of unsmoked rubber sheet, from 128-133 baht in September. The decline reflects falling prices in major commodity markets such as the Tokyo Commodity Exchange, where the December contract this week was bid at $3.23 for a kilogram of ribbed smoked sheet grade 3 (RSS3), compared with $4 to $4.40 earlier for the October contract and $4.60 to $4.70 for September delivery. According to Wit, the International Rubber Consortium Company (IRCo), formed by three leading rubber producers, Indonesia, Malaysia and Thailand, will meet this weekend and may discuss plans to slow down exports.