Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
Prices of natural rubber, used in everything from condoms to automobile tires, are languishing near record lows and causing headaches for farmers.
The commodity is a staple in industrial supply chains but prices, which are determined primarily by the Shanghai Futures Exchange, have been volatile in recent years. After hitting rock bottom in early 2016 at roughly $1,000 a ton, levels are now around $1,400 a ton — which is still well below the 10-year average of $2,500 a ton, according to Halcyon Agri, a global supplier of the durable material.
The Singapore-based firm hopes to rectify the current gloomy environment.
"With what we're doing, I think we can restore a fair price over time by reducing the volatility," CEO Robert Meyer told CNBC on Monday.
Halcyon Agri has been on a heavy-duty acquisition spree as of late.
Last year, it entered into a three-way merger with Chinese chemicals firms Sinochem International and Singaporean rubber producer GMG Global to create the world's largest rubber supply chain manager.
In recent weeks, it's snapped up five rubber factories across Indonesia, adding to its portfolio of plants in Thailand and Malaysia. Those Southeast Asian countries produce nearly 70 percent of the world's natural rubber and officials in the three nations are expected to cut exports in response to dwindling prices.
"Managing volatility costs money, not just for us but for the whole supply chain, so I think we can take that cost out as volatility comes off and that restores income to farmers," Meyer said. Because erratic price movements determine how much farmers take home every day, many aren't getting a fair price for their product, he continued.
Shanghai futures are "more driven by what they call the black commodity complex, so rubber is bundled with iron ore, with rebar, with coal and that is subject to a lot of speculative interest," Meyer explained. "With that, the raw material prices move around."
Meyer said he's optimistic, however, noting that "this is an extremely interesting time for the rubber market."
"On a macro level, commodities have been in decline for a number of years, so the supply/demand is tightening," he said. "From a price point, this is a very good time to look at this market."