Surprise! Reuters break “Blockade” of “Troublesom” Thai rubber news

When was the last time there was news related to Thai rubber? Well, not for a very long time, especially from the local press!

As rubber prices tanks to the lowest level in years, Suthep and his Southern rubber growers are “Basking in the Sun” as junta head, Prayuth, does exactly what he called for, a reform of Thai politics so the elite will remain in control.

Members of existing political parties will be ineligible to join the legislature or the reform council, according to the charter, which gives the NCPO power to appoint members to both groups.

Late last year and early this years, in galvanizing supporters in rubber growing Southern Thailand, Sutthep, bought up the low rubber prices issue, and local press, mostly anti Shinawattra, play up the low rubber price news, to even suggesting Yingluck favored rice growers over rubber growers. A Yingluck minister, Kittirat, went to negotiate with the rubber growers, and agreed to a support price for rubber. However, the rubber farmers, continued to protest.

The following is from Reuters (Source)

Asia Rubber-Trading remains thin, sellers dispose of stocks to avoid losses

Reuters

BANGKOK, July 25 (Reuters) – Trading in Asian physicalrubber remained thin as sellers were forced to dispose of stocksto avoid losses amid declining prices, while buyers stayed onthe sidelines, waiting for prices to fall further, traders saidon Friday.

Major tyremakers bought the benchmark Thai smoked rubbersheet (RSS3) at $1.99 per kg, they said.

“That was below their cost of around $2.03 per kg,” said atrader in Thailand Hat Yai rubber centre.

Thai blocked rubber grade (STR20) changed hands at$1.70-$1.72 per kg, slightly below the production cost of around$1.75 per kg, traders said.

Unfavourable rains in Thailand’s south, the country’s majorrubber growing area, have helped lift prices slightly higher,they said. However, that deterred buyers from buying.

“Buyers expect prices to fall further and they are waitingfor that,” said a Malaysian trader.

Dealers said tyremakers switched to buy Indonesian gradeblocked rubber as prices were more competitive compared to Thaigrades.

Indonesian blocked rubber (SIR20) was sold at $1.68 per kg,well below the same grade from Thailand which was offered at$1.75-$1.80 per kg, traders said. (Reporting by Apornrath Phoonphongphiphat; Editing bySubhranshu Sahu)

Blomberg reports: “Thailand’s junta announced an interim constitution that gives the military oversight of a hand-picked legislative assembly as well as amnesty for staging their May 22 coup. The military will choose a 220-member legislature, which will pick a prime minister and 35-strong cabinet, according to a statement in the Royal Gazette. General Prayuth Chan-Ocha, leader of the National Council for Peace and Order, received the endorsed charter from King Bhumibol Adulyadej yesterday.”

“The constitution reflects the demands of a protest group led by former opposition lawmaker Suthep Thaugsuban that staged a six-month street campaign to oust the administration of former Prime Minister Yingluck Shinawatra. Suthep urged the army to seize power and appoint a reform council to wipe out the influence of Yingluck and her brother Thaksin, whose parties have won the last five elections.”

“The constitution “will help solve the crisis and return the situation to normal, restore security, unity and solve economic problems,” according to the statement. The reform council will draft “political rules to prevent and suppress corruption and investigate abuses of power by the state before handing the mission to new representatives and the government.”

“The constitution, which replaces the one annulled by Prayuth after the coup, is Thailand’s 18th since becoming a constitutional monarchy in 1932. The charter also calls for the formation of a 250-member reform committee that will need to approve a permanent constitution to be written by a 36-strong drafting committee before elections can be held.”

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