July 26, 200 (LBO) – Sri Lankan rubber prices rose again at last week’s auction on continued short supply as rain affected tapping but brokers said the shortage might ease if the current dry weather continues.
“If the dry weather continues, in the next two weeks we might see increased volumes in the market.”
Brokers and dealers said that although the industry has been trying to encourage the use of rain guards to enable tapping even during rains their use was still not widespread enough.
“Also, we’ve been having very heavy rains. When the rain is heavy it is difficult to tap. Tappers are also reluctant to go to the field during heavy rains.” The price of the main grade latex crepe 1X went up to 521.50 rupees a kilo.
“Prices went up due to short supply in the market,” said Shehan Meegama of brokers John Keells.
“There has been bad weather- heavy rains – in the past so many weeks with no dry spell. Also, demand is increasing.”
Other rubber traders said supply has been affected by disruption of production at key origins like Vietnam, Thailand and India earlier this year.
Rubber prices shot up because of the short supply and then eased when production at major origins returned t