Rubber production figures swings, prices fluctuate

COCHIN (Commodity Online) : NMCE Rubber prices are in downtrend on the global sentiments despite a production decline data and a looming supply-demand deficit of Rubber.
Thailand is facing flood fury and plantations are facing severe damage. But according to a report by Reuters quoting Luckchai Kittipol, president of the Thai Rubber Association, the world's biggest producer can still produce 3.46 million tonnes this year which is almost 1 per cent down from the previous year.
Middle East crisis and the Japan quake has already rattled the Rubber price momentum putting it in a swing with a major traders unable to put a fixed position. During the quake, many traders were unable to even get out of their positions because there were not enough buyers in the electronic platform as well as the spot markets.
Prices of Rubber has been varying in almost all the parts and it could average this year around 4.5$ per kilogram. Many believe this should ideally go above $5 only after which the farmers can get their due.
But the Rubber consumers and buyers are not in favor of such tactics and say their cost is increasing manifold and is unable to pass it on to the end users.