Rubber Tree Farmers Heading For Crisis, Warns Consortium Chief
8 April 2015, 13:47 SEAST
Tocom rubber futures settle lower, falling below previous Y200/kg psychological support, sparking concerns of further losses.
International Rubber Consortium chief executive Yium Tavarolit says in market report released Wednesday morning that there has been an acceleration of rubber tree replanting amid a sustained price decline since 2012; he adds there will be a “critical” natural rubber supply shortage if prices continue to stay below the cost of production, as rubber farmers cannot sustain their livelihoods.
Benchmark September rubber settles 3.0 yen lower at 199.0 yen/kg.