Supply and Demand :: essays research papers

yield 1     The arctic supply in Japan is at an all time minuscule. The article chosen discusses how the number 1 supplies of dick are not typical for the time of year. Tokyo rubber or TOCOM is the Tokyo Commodity Exchange which regulates the rubber market in Japan. A rally was held recently which was the largest in years because of the concerns about low supplies and historically low rubber stocks.      The benchmark December rubber annunciation on the Tokyo Commodity Exchange rose as eminent as 169.2 yearn per kg, the priciest for TOCOMs key contract since March 11, 1996, when prices gain 174.6. At the close it was up 3.4 yen at 168.7 (TOCOM.).The contracts that are already gestural between different companies for delivery from August to November of 2005 are not feeling too good. The price for rubber is expected to rise five yen on the stock exchange. Julys contracts, which pack no price limit, complete up seven at 189.8 yen per kg of rubber. This meant that the rubber contracts hit their life-time broad(prenominal). The expectations of investors in Tokyo are that the price of rubber will meridian in August and begin to decrease when rubber supplies increase.      The price spreadhead of rubber between the December and July widened to 21.1 yen. Rubber supplies arrive been low repayable to a delay in shipments from Thailand. Thailand is the worlds largest manufacturer and exporter of rude(a) rubber. The shipments of rubber have fallen due to bad weather conditions. Rubber supplies normally dispose from the beginning of February which is winter and the dry season in southern Thailand. During Supply 2this season, latex output declines because the rubber trees shed their leaves. Production in general, returns to normal by beginning of May, but the buyers are still not getting enough shipments.      Japan purchases over 60 percent of its rubber imports from Thailand . Because the signs of short production, rubber stocks in Japan have decreased to the low level in forty years. According to the he Rubber divvy up Association of Japan, Prior to June of 2005, the lowest the stock had been was back in 1962. Because of the high costs of rubber and the decrease in supply, manufacturers are considering shifting to natural rubber from expensive synthetic rubber. High oil costs have also driven up rubber costs.      Because of the low supplies of rubber, companies are forced to increase the price.