Thread: Rubber trees 101

Kee Yang, 40.80 baht per kilo, yesterday at auction, Udon. Last two fortnightly sales have been 37 and 38 baht per kg, so onwards and upwards. Hopefully back to 45 ish by the end of the year.

Laugh for the day, village up the road set up a rubber auction co operative.
Tons of rubber brought in from the locals, auction yesterday, forgot to tell the big buyers.
No rubber sold at all. Jim

Originally Posted by jamescollister

Laugh for the day, village up the road set up a rubber auction co operative.
Tons of rubber brought in from the locals, auction yesterday, forgot to tell the big buyers.
No rubber sold at all. Jim

Kee yang sales inn Doonsat 35 bath yesterday

Tokyo rubber futures rise as data suggests global rebound (Aug 23)
TOKYO, Aug 23 (Reuters) – Benchmark TOCOM rubber futures rose on Friday after the outlook for the global economy brightened following overnight overseas data that showed a pick-up in business activity for several regions.

FUNDAMENTALS

* The key Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery was up 0.8 percent at 268.0 yen per kg at 0033 GMT, after settling 2.8 percent higher on Thursday.

* Business surveys suggested the world economy was improving on Thursday, with U.S. and Chinese manufacturing activity at multi-month highs and better-than-expected growth in the euro zone.

* Indian monsoon rains were 51 percent below average in the rubber growing state of Kerala in the week to August 21, data showed lated on Thursday.

* U.S. auto sales in August are on pace to show a 12 percent rise from last year, market analysts J.D. Power & Associates and LMC Automotive said late on Thursday.

Hey Jim , this looks to be getting serious , what do you make of it?Rubber farmers threaten road blockades - The Nation

"Thai rubber free-on-board added 0.3 percent to 82.95 baht ($2.60) a kilogram on Aug. 23, according to the Rubber Research Institute of Thailand"

Rubber Poised for Bull Market as China

Originally Posted by piwanoi

Hey Jim , this looks to be getting serious , what do you make of it?Rubber farmers threaten road blockades - The Nation

Nothing new, Thai farmers like to protest, except a rice planting and harvesting time.
They seem to think and have been lead to believe that the Government controls the prices. Which is not true, it's a commodity on the world market, just like in the west, things in a country are booming, it's the Government good management of the economy. Things go bad it's not their fault, it's the world economy.

The Thai Government will throw some money about, make speeches, talk of deals with the other rubber producing nations. When prices pick up as the world gets better, the Government will take credit.

To be honest don't think it's the prices that are the real problem, small planters borrowed big to buy new pickups TVs etc in the belief, that what the Government promised when they introduced the 5 Baht a kilo export tax. The tax was to stabilize rubber price at over 100 Baht a kilo for RSS3.
Governments and election promises, Government could increase the price overnight by removing the tax, but they won't. Jim

Originally Posted by Norton

"Thai rubber free-on-board added 0.3 percent to 82.95 baht ($2.60) a kilogram on Aug. 23, according to the Rubber Research Institute of Thailand"

Rubber Poised for Bull Market as China

Yeah Norton , but thats still a huge price discrepancy from the 120 baht a kilo what the farmers are demanding

Originally Posted by jamescollister

Originally Posted by piwanoi

Hey Jim , this looks to be getting serious , what do you make of it?Rubber farmers threaten road blockades - The Nation

Nothing new, Thai farmers like to protest, except a rice planting and harvesting time.
They seem to think and have been lead to believe that the Government controls the prices. Which is not true, it's a commodity on the world market, just like in the west, things in a country are booming, it's the Government good management of the economy. Things go bad it's not their fault, it's the world economy.

The Thai Government will throw some money about, make speeches, talk of deals with the other rubber producing nations. When prices pick up as the world gets better, the Government will take credit.

To be honest don't think it's the prices that are the real problem, small planters borrowed big to buy new pickups TVs etc in the belief, that what the Government promised when they introduced the 5 Baht a kilo export tax. The tax was to stabilize rubber price at over 100 Baht a kilo for RSS3.
Governments and election promises, Government could increase the price overnight by removing the tax, but they won't. Jim

Thanks for the reply Jim , correct me if I'm wrong but it appears from what you say that the Farmers are being unreasonable in demanding 120 baht a kilo with a threat to blockade the roads if they don't get it .

Originally Posted by piwanoi

still a huge price discrepancy from the 120 baht a kilo what the farmers are demanding

Good for them. Perhaps they should be aware, "demand in one hand, shit in the other and see which one fills quickest".

Piwanoi, offcause they are being unreasonable, but they just don't understand, it's the overseas buyers that set the price not the Government.

Only India has control of the rubber price and that's because they use more than they produce. Price drops and they increase the import tax.

Supply and demand is the bottom line, farmers want 120 Baht a kilo, stop tapping their trees for a few months, there will be less supply and prices will rise. Not going to happen. Jim

Originally Posted by jamescollister

Piwanoi, offcause they are being unreasonable, but they just don't understand, it's the overseas buyers that set the price not the Government.

Only India has control of the rubber price and that's because they use more than they produce. Price drops and they increase the import tax.

Supply and demand is the bottom line, farmers want 120 Baht a kilo, stop tapping their trees for a few months, there will be less supply and prices will rise. Not going to happen. Jim

Yeah Jim , what you say makes sense ,but its going to be interesting whats going to happen if the Govt don't cough up , which in reading the article just ain't going to happen !

Where I am the farmers say, they help rice farmers so why not help us the rubber farmers, fair question in my opinion, they do not have a clue about world economics and do not care they blame the government for everything.

http://www.maybank-ke.co.th/rdbs/Sto...plaining_T.pdf

Actually there are four agricultural products that have price support allowances in the Thai Budget. Rice the largest, rubber is another , cassava the third and I think palm oil is the fourth. The link explains how it is funded.

Originally Posted by IsaanAussie

http://www.maybank-ke.co.th/rdbs/Sto...plaining_T.pdf

Actually there are four agricultural products that have price support allowances in the Thai Budget. Rice the largest, rubber is another , cassava the third and I think palm oil is the fourth. The link explains how it is funded.

Only 4 Issan Aussie? I think you had better read on , I am not sure if you remember the CAP (the common agricultural policy ) in Europe , this was another dreamed up scheme of subsidies paying far more than the products was actually worth , this madness in Thailand will eventually go the same way , cos you just cannot buck World prices as Jim said in his posts about the current price of rubber, as every one is at the mercy of their competitor, and if you cannot compete price wise, sooner or later when the dawn of realization comes that no one one has the divine right to taxpayers money to bail them out until the "cows come home".http://www.nationmultimedia.com/busi...-30180565.html they actually tried it with Onions too but that was just another disaster!

Originally Posted by jamescollister

Piwanoi, offcause they are being unreasonable, but they just don't understand, it's the overseas buyers that set the price not the Government.

Only India has control of the rubber price and that's because they use more than they produce. Price drops and they increase the import tax.

Supply and demand is the bottom line, farmers want 120 Baht a kilo, stop tapping their trees for a few months, there will be less supply and prices will rise. Not going to happen. Jim

According to this latest article Jim, it would appear the rubber farmers are quite willing to go all the way to have their demands met!Rubber farmers threaten larger protests | Bangkok Post: news

Originally Posted by piwanoi

Originally Posted by jamescollister

Piwanoi, offcause they are being unreasonable, but they just don't understand, it's the overseas buyers that set the price not the Government.

Only India has control of the rubber price and that's because they use more than they produce. Price drops and they increase the import tax.

Supply and demand is the bottom line, farmers want 120 Baht a kilo, stop tapping their trees for a few months, there will be less supply and prices will rise. Not going to happen. Jim

According to this latest article Jim, it would appear the rubber farmers are quite willing to go all the way to have their demands met!Rubber farmers threaten larger protests | Bangkok Post: news

Politics and smoke and mirrors, Government can't really do much. Most rubber is bought by private companies, they have to pay the rate dictated by their overseas buyers.
No one is going to pay more for rubber than they can sell it for, Government can't buy everyone's rubber, they don't have the money or facilities.
Same as last year they will buy from co ops at a set price, but you take your rubber there and don't get paid. Rubber is then shipped to the storage area racked and sacked, payment to the co op 60 days. Small rubber farmers can't wait, so they sell to the middle men who can wait.
Looks like the Government is helping out the little guy, but they are only helping out the money men.
When the rains ease tappers will go back to tapping, rubber protests will stop, to be replaced by the rice farmers, cassava farmers, worm farmers and dog farmers who have time on their hands.
Reality, if the rubber planters were so poor because of low prices they could go get a job, instead of having a camp out with their mates, eating som tam and drinking lao kow. Just the Thai way. Jim

Well at least the price will be going up in India.

Originally Posted by IsaanAussie

Well at least the price will be going up in India.

India's economy is stranded up shits creek without a paddle BBC News - Indian rupee falls to new low against US dollar

Originally Posted by jamescollister

Reality, if the rubber planters were so poor because of low prices they could go get a job, instead of having a camp out with their mates, eating som tam and drinking lao kow. Just the Thai way. Jim

Saw an interview with one on channel 3 news. He complained that the low prices would force him to give up his Honda SUV. He couldn't make his 9,000 baht a month payments.

Got to tell ya, it almost broke my heart.

Originally Posted by ltnt

Originally Posted by jamescollister

Reality, if the rubber planters were so poor because of low prices they could go get a job, instead of having a camp out with their mates, eating som tam and drinking lao kow. Just the Thai way. Jim

Saw an interview with one on channel 3 news. He complained that the low prices would force him to give up his Honda SUV. He couldn't make his 9,000 baht a month payments.

Got to tell ya, it almost broke my heart.

It's a sad state of affairs, BIL who has a MU 7, not 3 years old bought a new Ford Ranger high rider 2 months ago, FIL bought [ if you can believe, a Mazda 2 sport 3 months ago, live in the jungle ] and wife's complaining that the insurance is due next month on our Pajero 7 seat sport.

Never in my whole working life have I ever owned a new car, here I ride a Chinese chopper and drive a 11 year old strata pick up.
Rubber pays for these cars and it's the Governments fault that they may not be able to make the payments. No responsibility on their part, get it now Buddha will take care.

No use coming to me for help, have 200 Baht in the bank and not one red cent coming in from overseas. Tell them the way of the world, but a farang doesn't know how things work in Thailand.

I'm stupid and they will be broke. Jim

Gotta tell you Jim, they are right. I have absolutely no idea how things "work" here. A year ago this village was tapped out financially, no-one had a baht or access to more. New houses, cars, tractors everywhere now, but no increase in income? Buggered if I can work it out!

^^Credits easy here. Paybacks are forgotten and forgiven. Then a week later its back to a different bank or loan shark for more cash.

Seems to me from watching its a "monkey see, monkey do," sort of mentality. Keeping up with the Jone's type people.

My Thai neighbors watch my house for changes and activity. What ever we do or purchase we know that soon something similar will happen or be purchased.

Buy a tractor, 6 more show up next week. I'm thinking that we're bankrupting the entire bann.

What's really weird is all the Thai's old and young who wander aimlessly staring at their Smart phones with nothing else to do? Seems the entire population is now on "hold."

Jan my wife and the village headmans son who has had a decent education and speaks good English inform me that there is not a family in our Village that is not in debt ,and some quite heavily , the crunch is going to come at Harvest time cos all have planted Hom Mali rice ,thinking that the pledging price of 20,000 a tonne for Hom Mali and 15,000 for white rice is still in force , that,s gone, the across the board price is 15,000 ,which means they will be lucky to get 12,000 if last year is anything to go by,its going to be interesting to see what happens come Nov.