Rubber Prices Ease Off at Colombo Rubber Auction

Natural rubber prices eased off at the latest Colombo Rubber Auction, as Crepe 1X prices declined by Rs.50 to R.580. RSS No.1 also traded at Rs.566 to 575 levels.
According to brokers, natural rubber prices have started stabilizing after hitting successive record high prices and most of the Asia rubber auctions were subjected to it.
"In Sri Lanka too, prices came down in line with overseas markets. However, a heavy drop in production is witnessed right now due to the ongoing wintering. Though prices fell, traders and consumers are collecting all what is available in the market, since the volumes are expected to decline in the near future" a commodities broker said.
The rubber tree will slow down its flow of latex during leaf fall, which is a natural protective measure adopted by the tree to protect itself from starvation. Hence, the demand should increase in the coming weeks once more.
(Daily Mirror, Sri Lanka, March 3, 2011)