In August, Thailand's rubber prices slightly changed due to the demand in line with the international futures market. August's average RSS3 price announced by Central Rubber Market in Songkhla stood at 50.12 Baht/kg, up 14.17% from the previous month due to the following factors.

The export sector and tourism sector remain weakened. Thailand’s economy remains highly uncertain due to the Covid-19 pandemic, baht appreciation, including political issues, and the risk of the COVID-19 virus spreading again. After reopening the country, Thai government should roll out the appropriate measures to urge the economy immediately. If the government does not respond immediately, it will affect the liquidity of entrepreneurs leading to business shut down. 

In July, Thailand Industrial Sentiment Index (TISI) rise to 82.5 from 80.0 of the previous month. According to loosening the lockdown measure, businesses are back to operate, and product demand increases, such as electrical appliances, clothing, and building material goods, as well as various promotions to stimulate domestic spending. Meanwhile, the entrepreneurs are still worried about the liquidity, loans, and phrase2 of the Covid-19 pandemic. However, the next Monetary Policy Committee Meeting is scheduled on Wednesday, 23 September 2020.

In terms of Thailand’s international trade in July 2020, Thailand’s export income value 579,654.29 million baht, down 11.61% yoy, and up 11.34% compared with June 2020. From January to July 2020, Thailand’s export income value 4,141,982.21 million baht, down 8.77% yoy. In terms of trade balance in July 2020, Thailand recorded a trade surplus of 96,344.56 million baht, different from a trade deficit of 2,571.25 million baht in July 2019. During January-July 2020, Thailand recorded a trade surplus of 389,496.80 million baht (Ministry of Commerce, 2020). 

The Institute for Supply Management (ISM) informed that the manufacturing sector’s Purchasing Managers’ Index (PMI) of the US up to 53.1 in August from 50.9 in July, which is the highest record since January 2019. Meanwhile, Thailand’s PMI up to 49.7 in August from 45.9 in July.

West Texas Intermediate (WTI) crude oil and Brent crude oil prices slightly dropped. On August 28, 2020, West Texas Intermediate (WTI) crude oil and Brent crude oil prices stood at 42.97 and 45.05 USD/barrel, respectively. After Hurricane Laura moves ashore in southwestern Louisiana and Texas, oil refineries in the United States temporarily stop their operations, which commonly produce 2.33 million barrels per day or 11% of all oil refineries production in the United States. Even though this incident did not cause large damage, the market remains concerned about the recovery of the US economy and global oil demand.

The U.S. Energy Information Administration (EIA) has announced the crude oil inventories of the U.S. decreased more than 4.7 million barrels to 508 million barrels for the week ending August 21, 2020, because crude oil export of the US is the highest in 18 months. 

In July 2020, Thailand exported 314,345.72 tons of natural rubber (including compound rubber), down 7.18% from the previous month and down 6.96% yoy, generating an export income of 11.7 billion baht, down 12.40% compared with the previous month, down 25.44% yoy. In the tyre sector, in July 2020, Thailand exported 12.57 million units of all tyres, up 6.95% yoy, with an export value of 15.3 billion baht, down 1.17% YoY. The amount of Thailand's car production in July 2020 is 89,336 units, down 47.71% yoy, including 43,640 units or 48.85% at export and 45,696 units or 51.15% at domestic sales. The car production for exports and domestic sales decreased by 47.42 %yoy and 47.98 % yoy, respectively. However, the amount of Thailand's car production in July 2020 increased 24.59% comparing with the previous month because most of the automotive entrepreneurs resumed their operations; moreover, the automotive factories are back to open their car production line. From January to July 2020, Thai produced 695,468 of cars, down 43.77%yoy.