Rubber Prices started to climb again....

Think9 · 1 Rubber Prices started to climb again.... Thu Jun 09, 2011 12:02 pm

Think9

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Rubber prices started to climb again. This is due to 2 main reasons.

1. Because of the new wage deal, the profit gap of the plantations gets narrow. But this gap will roll on to the buyers by increasing the per kg price. Who will get the burned into there hands when there is so much of demand. ; )

2. Bad weather effected badly for rubber and tea. due to low supply n high demand, to meet the equilibrium level rubber prices need to move up.

This is just a slight idea of the R.auction price comparison.

April end - 420 kg
May mid - 430 kg
May end - 515 kg
June 7th - 525 - 530 kg

As i heard, many of the stock broker firms have advised to get out of the plantation stocks. specially because of the wage deal and that it will fall down badly. I dis-agree with this statement. I feel plantations who got higher % gain from rubber generally will do best in the coming future. and share prices will climb up further n further.

Others opinions and ideas are welcome for this discussion.

Think9 · 2 Re: Rubber Prices started to climb again.... Thu Jun 09, 2011 12:04 pm

Think9

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This s one of hints .

http://print.dailymirror.lk/business/127-local/46272-rubber-prices-remain-firm.html

Hawk Eye · 3 Re: Rubber Prices started to climb again.... Thu Jun 09, 2011 12:33 pm

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If you look at KGAL Annual Report the lowest Rubber production for an year being in 2011 while the highest in 2003. But 2011 performance is the best ever recorded for KGAL. Which validates your reason number 2

If the rubber prices going up, we can expect another good qtr results from KGAL. Additionally they have ample stock and Deferred income in balance sheet

dr kiru005 · 4 Re: Rubber Prices started to climb again.... Thu Jun 09, 2011 12:58 pm

dr kiru005

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i agree i think this is another trick of the stock brokers with the dividends waiting and problems settled there is only one way for plantation is to go up. share brokers may manipulate to buy some for them.

Think9 · 5 Re: Rubber Prices started to climb again.... Thu Jun 09, 2011 10:10 pm

Think9

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just keep on eye on plantations who got higher % of oil and rubber. These shares will be a good valuable strong ones in mid-term.avoid plantations who ve more % of tea.

for me : HOPL / ELPL / AGAL / KGAL / KOTA .

Ppl should invest wisely and nt following the trend or brokers 100%.

dont like to mention the broker firm. but i stil can remember this so called reputed particular firm was so concerned to generate a report and send all sayin a BUY recommendation for GRAN at 165. LOL... n now its 118.. Think twice wen u go through such reports.

Now two brokering firms circulating desperately reports saying there s a risk involve in plantation stocks. rolf.. crap.

kam2011 · 6 Re: Rubber Prices started to climb again.... Thu Jun 09, 2011 10:31 pm

kam2011

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I agree with the contents of all posts above. Wage hike is not a Devil. If you want to achieve higher performace of your business you will have to share your profits with the workers. Then only you could achieve higher productity targets and thereby incease profitability of the enterprise. Ultimately shareholders will be benefitted.

CSE1 · 7 Re: Rubber Prices started to climb again.... Thu Jun 30, 2011 4:06 pm

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Think9 wrote:Rubber prices started to climb again. This is due to 2 main reasons.

1. Because of the new wage deal, the profit gap of the plantations gets narrow. But this gap will roll on to the buyers by increasing the per kg price. Who will get the burned into there hands when there is so much of demand. ; )

2. Bad weather effected badly for rubber and tea. due to low supply n high demand, to meet the equilibrium level rubber prices need to move up.

This is just a slight idea of the R.auction price comparison.

April end - 420 kg
May mid - 430 kg
May end - 515 kg
June 7th - 525 - 530 kg

As i heard, many of the stock broker firms have advised to get out of the plantation stocks. specially because of the wage deal and that it will fall down badly. I dis-agree with this statement. I feel plantations who got higher % gain from rubber generally will do best in the coming future. and share prices will climb up further n further.

Others opinions and ideas are welcome for this discussion.

u can check rubber prices in this link http://www.crtasl.org/

hmm looks like rubber prices going up Very Happy

(waiting for Plantation rally ??? )

Prince · 8 Re: Rubber Prices started to climb again.... Thu Jun 30, 2011 5:41 pm

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Key Tokyo rubber futures rose 1.5 percent early on Thursday as oil
prices jumped and shares rallied after Greece moved a step closer to
securing international aid, but concerns over rising supply from
producing countries limited gains.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for December delivery was up 5.4 yen at 363.2 yen per kg as of 0040 GMT.
The benchmark contract rose as high as 365.7 yen.
*
The most active Shanghai rubber contract for September delivery rose
360 yuan to finish at 31,060 yuan ($4,800) per tonne on Wednesday.
*
The heavy rain that has hit top producer Thailand for weeks has stopped,
allowing farmers to tap more latex, so supply is likely to rise
gradually.
* Oil jumped as much as 3 percent on Wednesday, ending at
the highest level in a week, as sharp draw-downs in U.S. crude and
gasoline stocks fed a rally spawned when Greece passed an austerity plan
to avoid a sovereign debt default.
* The dollar slipped to 80.71 against the yen, off this week’s high of 81.26.

MARKET NEWS
* Japan’s benchmark Nikkei average opened up 0.4 percent at 9,838.09 on Thursday, following rallies in Wall Street.
*
Wall Street closed its best three-day run in three months on Wednesday
after the Greek parliament approved austerity measures to avoid
defaulting on its debt.
* Fewer cars on dealer lots and higher prices
— factors that led to disappointing U.S. auto sales in May — look to
hold June results in check.
* BMW , the world’s largest maker of
luxury cars, expects to maintain double-digit sales growth this year in
Brazil, where it may build an assembly plant, a senior executive said in
an interview.
* South Korea’s Hyundai Motor Group said on Thursday
it was targeting to raise U.S. auto sales by 18.2 percent this year to
1.06 million vehicles.

-TOKYO, June 30 (Reuters)

Rubber Prices started to climb again.... Rubber10