Monthly Rubber Situations in Thailand - May 2014

On May 22, 2014 at 4.30 p.m., the military deposed the government. Then, National Council for Peace and Order (NCPO) became the ruling body of Thailand in an attempt to stop the country’s escalating political crisis after the government insisted on not resigning. While the People's Democratic Reform Committee (PDRC) couldn’t compromise with the opposite side i.e. the United Front of Democracy against Dictatorship (UDD). It was expected that the seizure of power brings about peace to the country and rubber price would also rebound.

In terms of natural rubber, that the government announced that it would destock 210,000 tonnes of natural rubber was partially agreed and disagreed. The plan is totally opposed by rubber growers as the current rubber price is already low. Current RSS3 price stays at 60 Baht per kilogram. If the plan is implemented, rubber price will definitely decline further. Rubber growers were dissatisfied and continued the objection of the plan, urging the government to reconsider.