Rubber output slips on heavy rain
Thailand - Global rubber production in 2009 could fall by almost 5.1% after flash floods and rains in November affected output in the major rubber-producing countries of Malaysia, Indonesia and Thailand.
Output in the three main producers, which account for 70% of global output, could slip to 6.45 million tonnes in 2009, down from the October forecast of 6.62 million and lower than the 6.91 million estimated last year, according to data from the Association of Natural Rubber Producing Countries (ANRPC).
"Rubber plantations in Thailand's southern region and the north of Malaysia have been badly affected by flooding caused by torrential rains throughout November," said the ANRPC. "This indicates the possibility of a substantial downward revision in the production anticipated for November 2009 and for the year 2009," it added.
Limited supplies from the bad weather pushed prices up by more than 10% last month. Benchmark Thai RSS3 grade now hovers around the US$2.75/kg mark.
Supplies are also likely to shrink further next year during the dry wintering season in Thailand, the association said.
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