Rubber auction at Buri Ram market called off as no sellers show up

[webfact]

Rubber auction at Buri Ram market called off as no sellers show up



BANGKOK: -- The Rubber Estate Organisation today called off a rubber auction after not a single rubber trader showed up to sell their rubber sheets at the central rubber market in Buri Ram province.

The atmosphere at the market was so quiet as there was not a single trader showing up prompting the officials concerned to cancel the auction as one of the measures introduced by the government to boost rubber prices.

It was reported that traders or rubber farmers were reluctant to participate in the auction because they believed that they would not get good prices. Earlier, they were offered prices 8-10 baht per kilogramme above market prices but, this time, the prices expected to be on par with market prices.

Since the rubber buffer stock scheme started on December 9, the Buri Ram central rubber market has 13 million kgs of rubber sheets worth 792 million baht from the farmers.

Source: http://englishnews.thaipbs.or.th/rubber-auction-at-buri-ram-market-called-off-as-no-sellers-show-up


-- Thai PBS 2015-03-11

[Toknarok]

555. Unbelievable, huge stockpile of rubber that nobody wants. Sounds familiar?

[khwaibah]

They will have to use the Castle for storage.

[NeilSA1]

555. Unbelievable, huge stockpile of rubber that nobody wants. Sounds familiar?

It seems nobody wants to sell. "...traders or rubber farmers were reluctant to participate in the auction because they believed that they would not get good prices..."

[Srikcir]

Is this auction another styled government pledge failure? Rubber farmers were being paid higher than market prices along with cash handouts by Prayut to essentially bribe them into not protesting prices in public.

Will the government hold itself accountable for the losses of this new program? Will Prayut offer his and Junta members' personal wealth to make up the losses? Unlikely. Such responsibility applies only to elected government officials.

[alant]

Not to worry, the market will bounce back soon.

(groan)

Edited March 12, 2015 by alant

[Muhendis]

Not to worry, the market will bounce back soon.

(groan)

At a stretch it may even expand.........

[BookMan]

Not to worry, the market will bounce back soon.

(groan)

At a stretch it may even expand.........

Predictions of an upswing in the price are based on rubbery data

[jaapfries]

Not to worry, the market will bounce back soon.

(groan)

At a stretch it may even expand.........

Predictions of an upswing in the price are based on rubbery data

Okay for YOU to laugh, but WE're stuck with 30 Rai of rubber-trees (Prachinburi) and the overheads continue faithfully, but the sales are @ "0" . . . . 555 !

[bassman]

Rubber another blight brought on by the Thaksin bunch. When the Shin clan tried to clamp down on the muslims in the south the insurgency swelled and numerous rubber projects were started in the NE with the usual back handing deals. Rubber trees went everywhere, the tragedy now is the investment it takes to produce rubber; the trees, the land clearance/bedding, the seven years to production. Additionally, rubber planting has destroyed a lot of soils as the erosion from ditching has been huge.

I hope the rubber folk the best in their endeavors and what a shame they were duped by the past governments.

But even now when we here the current PM talk of new crops and diversification in agricultural, I sincerely hope the processes are well thought through and not just to make people temporarily "happy".

[Eric Loh]

Rubber another blight brought on by the Thaksin bunch. When the Shin clan tried to clamp down on the muslims in the south the insurgency swelled and numerous rubber projects were started in the NE with the usual back handing deals. Rubber trees went everywhere, the tragedy now is the investment it takes to produce rubber; the trees, the land clearance/bedding, the seven years to production. Additionally, rubber planting has destroyed a lot of soils as the erosion from ditching has been huge.

I hope the rubber folk the best in their endeavors and what a shame they were duped by the past governments.

But even now when we here the current PM talk of new crops and diversification in agricultural, I sincerely hope the processes are well thought through and not just to make people temporarily "happy".

Don't think that less than 5% of total hectares Thailand rubber planation in the North East will made much of a dent and affect much farmers. They did enjoyed a period of high rubber price and should be happy. Contrary to what you said, rubber plantation actually reduce soil degradation, erosion and enhance soil fertility.

[billd766]

Is this auction another styled government pledge failure? Rubber farmers were being paid higher than market prices along with cash handouts by Prayut to essentially bribe them into not protesting prices in public.

Will the government hold itself accountable for the losses of this new program? Will Prayut offer his and Junta members' personal wealth to make up the losses? Unlikely. Such responsibility applies only to elected government officials.

No it isn't a failure whichever way you try to twist it.

The government set it up and if nobody wants to sell their rubber it is down to them and NOT the government.

I am sure that if the goverment offered to buy the stock at 40% over the market price, YOU would be the first to scream about the losses.

[SantiSuk]

Usual Thai response - if you can't sell something at the price you think it's worth then hold onto it until that price is reached. In the case of a commodity that has volatile pricing that might actually be a sensible strategy (if you can afford the holding costs) as opposed to wasting assets like cars and property.

[mango66]

let them to eat their rubber sheets and rott them down !!

[SlyAnimal]

Usual Thai response - if you can't sell something at the price you think it's worth then hold onto it until that price is reached. In the case of a commodity that has volatile pricing that might actually be a sensible strategy (if you can afford the holding costs) as opposed to wasting assets like cars and property.

I agree, this might be a valid strategy for them if they don't incur warehousing costs & don't take out high interest loans while they wait for better prices. The rubber sheets probably wouldn't lose value like the rice from the pledging scheme did.

But then, prices might still end up going down. As from what I gather, the government offered them quite reasonable prices last year, or maybe it was the year before I forget, but they complained and protested that it was too low and held out for a higher price. Those prices are about more than 2x the price they're able to get now.

[manxninja]

Cant the rubber producers use inependant export agents, im not sure how it works, but do they have to sell to Government?

[SlyAnimal]

I think that was the point of the auction. Except they knew that the auction would only essentially result in market rates (likely less a commission few as well).

Comparative the govt has offered to pay above market rates, but had the offer declined as it wasn't enough for them (Rubber prices have really plummeted compared to previous years).