Natural rubber low oscillation downstream just need to buy

The Tokyo rubber market rose over the weekend on the back of production cuts announced by major Thai producers
.
Coupled with the sharp decline in the front-month contract the previous day, the Tokyo rubber market completed the adjustment
of the near-month monthly spread to flat water in just two trading days.

In early trading, the Tokyo RSS market continued the previous day's near-month retreat, with August and September contracts falling sharply to around
170 yen after missing the support of previous buyers' funds 。 After that, it was reported that Thailand's major rubber producers will stop their RSS production due to financial problems, and may also halve their TSR production, and the shortage of RSS supply and demand in the short term may lead to a further increase in the far month price, and the near month contract due to the August and September entry plan has been set, coupled with the expiration of the September and October contract inventory, the delivery pressure under the delivery pressure will limit the price increase of the near month contract, thereby further accelerating the adjustment of the near and far month contract spread structure to flat water
.

In terms of spot, the August FOB price of No.
3 cigarette tablets on August 15 was around 46.
89 baht, up 0.
44 baht
from the previous session.
The August FOB price of No.
20 label rubber was around 41.
77 baht, up 0.
25 baht
from the previous session.
The USS spot price was around 39 baht, unchanged
from the previous session.

From a technical point of view, after a week or so of sideways trading, the RSS far month contract price has stood above the short-term conversion line, and coupled with the positive factors that may lead to a shortage of RSS supply in the future, it is expected that the far month contract price may rise back to the 175 yen line
shown in the medium-term benchmark in the short term.