MARCH 7 RUBBER OUTLOOK: Rally Extends on Thailand Supply Focus

The commodity increased 2.23%, or 3.90 points, to 178.50 yen per kilogram or IDR20,514.43 per kg at 10.12 WIB. Previously, rubber was open to increase at 175.60 yen per kg.

"Supply from Thailand plantation, fell because they have stopped tapping the trees," said the President of Komoditi Intelligence in Tokyo Masayo Kondo as quoted from Bloomberg, Monday (March 7, 2016).

The winter period causes the rubber trees to drop their leaves, so that the farmers have postponed their shipment. Thailand, Indonesia, and Malaysia agreed to cut rubber shipment by 615 kilotons in the six months since August 31.

Thailand is still the largest producer and exporter, while China is the largest rubber consumer.