NCPO to increase rubber prices, carefully releasing rubber stocks

[tonbridgebrit]

https://uk.news.yahoo.com/spanish-farmers-dump-potatoes-protest-over-russian-sanctions-110249678.html#Hspu191

The farmers in Spain are protesting against low prices. Is the Spanish government (or the European Union) going to step in, and save them ? Or are they going to step back, and watch the Spanish farmers go into bankruptcy ?

[Bluespunk]

So the Thais think once again that they gonna control world market prices ?

I thought things had changed sine May 22nd.

Where does it say they will do that?

Well it doesn't take a rocket scientist to know that if more of a product, from which there already is a glut on the worldmarket, is released it will negatively influence market prices.

Yet I read the following typical Thai statement

I am confident that there will not be any impact on present rubber prices," Col Winthai said.

Yes, I see that, but where does it say in the report that the NCPO said they would attempt to control world prices?

[Eric Loh]

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A rubber pledging scheme perhaps?

Rubber is a commodity in the international market and if your price are too high they go to your competitors . Additionally there has been a lot of studies to replace the rubber anyways, so if you want to dig your own grave then be my guest

At least rubber isn't quite as perishable as rice. So the dynamics aren't quite the same

Wrong. Rubber sheets in storage deteriorate too. Temperature, humidity, oxidation and even insects, rodent and mould affect quality of rubber in storage. That's also reason why the junta wants to sell the stockpile quickly.

[cooked]

Maybe part of the plan involves cutting down illegally planted plantations as has already been done. I hope so. Everybody started planting rubber when prices were good, now, surprise surprise, prices have dropped, partly due to worldwide planting, partly due to the introduction of synthetics. Whatever happens in Thailand won't have much effect on neighbouring countries' policies.

[rickirs]

There is more to this story:

The Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Government Savings Bank have agreed to provide low-interest loans worth 30 billion baht to agricultural institutions, particularly cooperatives, to buy rubber from farmers to help bolster prices, said BAAC deputy chief Somsak Kangtheerawat. Typically, repayment of loans to BAAC and GSB are guaranteed by Government debt instruments like Treasury Bonds.

The government bought the rubber at an average price of 104 baht/kg, a source from the Agriculture and Cooperatives Ministry said. As of August 25, 2014 the price for raw rubber sheets is 51.3 baht/kg. Of 10 potential buyers, the best offer stands at 58 baht/kg for raw rubber sheets and 62 baht/kg for smoked rubber sheets.

Rubber farmer Somkid Unping, from Surat Thani, said his hopes for a better deal for rubber farmers in return for their loyalty had been dashed. “We have not staged a rally for months because we believed the new government would not neglect us ...”

(ref. www.globalrubbermarkets.com )

[Thai at Heart]

is the concept of supply and demand setting prices that difficult to understand in Thailand?

No, except that the Thai version is "we have the supply and we demand that you pay our price"

There is a long and difficult road ahead for Thailand when it finally admits to itself that it cannot control the world price of, well, anything actually!

The road will be rocky until someone decides once and for all whether Thailand wants to pay a subsidy to its farmers for exports or not.

Why is this rubber scheme not being pilloried to the rafters after the rice one. Whyvare rubber farmers any more deserving than rice? Why is Thailand subsidising exports anyway?

[tonbridgebrit]

is the concept of supply and demand setting prices that difficult to understand in Thailand?

No, except that the Thai version is "we have the supply and we demand that you pay our price"

There is a long and difficult road ahead for Thailand when it finally admits to itself that it cannot control the world price of, well, anything actually!

The road will be rocky until someone decides once and for all whether Thailand wants to pay a subsidy to its farmers for exports or not.

Why is this rubber scheme not being pilloried to the rafters after the rice one. Whyvare rubber farmers any more deserving than rice? Why is Thailand subsidising exports anyway?

Europe is bailing out it's farmers, farmers are being hit because Europe's export markets have got a problem.

If it's okay for Europe to look after it's own, surely, it's okay for Thailand to look after it's own ?

"Why is this rubber scheme not being pilloried to the rafters after the rice one. Whyvare rubber farmers any more deserving than rice?" I don't think I'ill answer that one !

Let's just go ahead with "strategic subsidies" for rice AND rubber.

[Thai at Heart]

is the concept of supply and demand setting prices that difficult to understand in Thailand?

No, except that the Thai version is "we have the supply and we demand that you pay our price"

There is a long and difficult road ahead for Thailand when it finally admits to itself that it cannot control the world price of, well, anything actually!

The road will be rocky until someone decides once and for all whether Thailand wants to pay a subsidy to its farmers for exports or not.

Why is this rubber scheme not being pilloried to the rafters after the rice one. Whyvare rubber farmers any more deserving than rice? Why is Thailand subsidising exports anyway?

Europe is bailing out it's farmers, farmers are being hit because Europe's export markets have got a problem.

If it's okay for Europe to look after it's own, surely, it's okay for Thailand to look after it's own ?

"Why is this rubber scheme not being pilloried to the rafters after the rice one. Whyvare rubber farmers any more deserving than rice?" I don't think I'ill answer that one !

Let's just go ahead with "strategic subsidies" for rice AND rubber.

I agree.

However, a subsidy cannot exist under the current shambles of land ownership, rental and payments. The farmers need the cash, not the land owners or middle men.

Then there needs to be a strict quota for production to stop the glut. Its one thing to subsidise farners its another thing to subsidise exports.

[Brian Corrigan]

The Americans have started to produce latex from dandelion weeds and are investing huge amounts in development. Are you listening Thailand?

[thaiguzzi]

The Americans have started to produce latex from dandelion weeds and are investing huge amounts in development. Are you listening Thailand?

Not going to happen in my lifetime. this is old news, and they have been experimenting with this for a decade. Land is too valuable in the west to fill tens of thousands of acres with dandelions. They were looking to stick it into Eastern Europe, but even there land is just too valuable, ie foodstuffs, wheat, barley and corn are more viable.

Lot of people commenting on here are not clued up on the product of rubber. It is a commodity, yes, and it will come round again, but the experts reckon not until 2016, ie another 2 years. What will affect the price big time, is a catasrophe in the Middle East, and oil surging to $150 a barrel. That will hoik up the price sharply. Approx 51% of rubber products worldwide are synthetic, not natural, and are oil based. Rubber has always followed oil, when oil prices are high, the manufacturers turn more to natural than synthetic rubber.

And yes, i'm a rubber farmer too, even at these sh#it prices, if you have enough of it, and keep your tappers happy, you can still pay the bills, have food on the table and beer in the fridge.

[RTH10260]

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A rubber pledging scheme perhaps?

Rubber is a commodity in the international market and if your price are too high they go to your competitors . Additionally there has been a lot of studies to replace the rubber anyways, so if you want to dig your own grave then be my guest

Studies to replace rubber? That's why the now need a rubber research lab, after more than a century of world wide rubber industry. Will they reinvent the condom and push for more familiy planning to get riddance ofvthe rubber stock?

[Brian Corrigan]

The Americans have started to produce latex from dandelion weeds and are investing huge amounts in development. Are you listening Thailand?

Not going to happen in my lifetime. this is old news, and they have been experimenting with this for a decade. Land is too valuable in the west to fill tens of thousands of acres with dandelions. They were looking to stick it into Eastern Europe, but even there land is just too valuable, ie foodstuffs, wheat, barley and corn are more viable.

Lot of people commenting on here are not clued up on the product of rubber. It is a commodity, yes, and it will come round again, but the experts reckon not until 2016, ie another 2 years. What will affect the price big time, is a catasrophe in the Middle East, and oil surging to $150 a barrel. That will hoik up the price sharply. Approx 51% of rubber products worldwide are synthetic, not natural, and are oil based. Rubber has always followed oil, when oil prices are high, the manufacturers turn more to natural than synthetic rubber.

And yes, i'm a rubber farmer too, even at these sh#it prices, if you have enough of it, and keep your tappers happy, you can still pay the bills, have food on the table and beer in the fridge.

Synthetic rubber is no use where car tyres are invoved.

[Thai at Heart]

The Americans have started to produce latex from dandelion weeds and are investing huge amounts in development. Are you listening Thailand?

Not going to happen in my lifetime. this is old news, and they have been experimenting with this for a decade. Land is too valuable in the west to fill tens of thousands of acres with dandelions. They were looking to stick it into Eastern Europe, but even there land is just too valuable, ie foodstuffs, wheat, barley and corn are more viable.

Lot of people commenting on here are not clued up on the product of rubber. It is a commodity, yes, and it will come round again, but the experts reckon not until 2016, ie another 2 years. What will affect the price big time, is a catasrophe in the Middle East, and oil surging to $150 a barrel. That will hoik up the price sharply. Approx 51% of rubber products worldwide are synthetic, not natural, and are oil based. Rubber has always followed oil, when oil prices are high, the manufacturers turn more to natural than synthetic rubber.

And yes, i'm a rubber farmer too, even at these sh#it prices, if you have enough of it, and keep your tappers happy, you can still pay the bills, have food on the table and beer in the fridge.

Synthetic rubber is no use where car tyres are invoved.

But the crude oil price does feed through to demand for natural rubber. I feel sorry for the farmers because the price is absolutely dictated on a global basis but they are at the whims of the middle men when prices are in their favour.

Hard times ahead.

[Robespiere]

And so it begins....

The public are gradually going to realise that the Junta cannot be all things to all people (without bankrupting the country).

Choices will have to be made.

Subsidise rice farmers or rubber farmers, profit from cheap labour or expel the undocumented, allow the dubious surrogacy industry to continue or ban it and lose more capital inflows, tighten visa laws or keep the tourists and expats returning / living / teaching here......

As more and more people become disappointed that the Junta doesn't resolve their particular problems (whilst favouring other sectors of society) unrest will grow (and grow and grow)

With no outlet (elections, free speech) to vent frustrations, the whole show will eventually blow (in a big way).

Guess who is playing a patient game and quietly waiting in the wings, ready to sweep back into the country to a heroes welcome and rescue the day?

Yes that's right, my fascist friends, it's Mr T (and family)

Edited August 28, 2014 by Robespiere

[tullynagardy]

The government bought the rubber at an average price of 104 baht/kg. As of August 25, 2014 the price for raw rubber sheets is 51.3 baht/kg.

Great move by the junta and completely different than the rice scheme. Not quite sure why but it is. These junta populist policies don`t count because the media isn`t allowed to cover them and we all hate Thaksin and Im really different than my Issan wife and this proves it.

The general is my hero and I would love to perform fellatio on this pillar of a man. Down with Thaksin, up the yellows and forward with this real democracy.

[hawker9000]

Good luck, but this concept of government manipulation of commodity prices is playing with fire. 'Didn't work out that well (esp. for the government regime that did it) with the rice, did it?

[Thai at Heart]

Sugar next ladies and gentlemen.

The other paper has an article stating that there will be a huge surplus this year and that prices dropped 13% since June.

Thailand will have a surplus of nearly 5mn tonnes.

[hawker9000]

Sugar next ladies and gentlemen.

The other paper has an article stating that there will be a huge surplus this year and that prices dropped 13% since June.

Thailand will have a surplus of nearly 5mn tonnes.

...And meanwhile, in a related story, they want a new excise tax on sugary drinks. LOL.