Weather and Pesta outbreak compound Sri Lanka’s rubber production woes

Sri Lanka’s rubber production remains under pressure due to the persistent wet weather conditions and emergence of the new leaf fall disease Pesta, both of which are contributing to reduced output.
As a result, stronger demand was seen in the month of July for Latex Crepe No.1X and No.1, the rubber market report by Forbes & Walker Commodity Brokers said. 
During the month, 1XS moved up from Rs.710 to Rs.790 and No.1s reached Rs.775 per kilo. No.2s remained irregularly dearer, while the gradual decline in price of Latex Crepe 3 was evident.
Karachi was inactive during this period, due to the prevailing economic crisis in Pakistan, the report highlighted. 
The Scarp Crepes eased off by Rs.10 to Rs.15 per kilo, since the global prices of substitutes came down, which prompted the end users to switch grades. 
The prices of lower grade RSS weakened in tandem with the world prices. 
However, Forbes & Walker Commodity Brokers said it was evident that a reasonable demand still prevails for top-quality RSS1, as the price of No.1s remained between Rs.575 and Rs.600 throughout the month of July.

In a global context, production of natural rubber witnessed a 2.1 percent growth, amounting close to 1.3 million tonnes, while the global demand posted a relatively faster growth at 3.2 percent to 1.3 million tonnes during the month of July. 

The market’s heightened sensitivity to cautious market circumstances, combined with growing fears about China’s economic slowdown, continuous Federal Reserve rate hikes and geopolitical tensions, hindered this near-market-equilibrium development from driving the prospects of the natural rubber market, the report highlighted.
The world natural rubber market size was valued at US $ 34,132.98 million in 2022 and is expected to expand at a CAGR of 10.65 percent, reaching US $ 62,650.7 million by 2028.

In a global context, production of natural rubber witnessed a 2.1 percent growth, amounting close to 1.3 million tonnes, while the global demand posted a relatively faster growth at 3.2 percent to 1.3 million tonnes during the month of July. 

The market’s heightened sensitivity to cautious market circumstances, combined with growing fears about China’s economic slowdown, continuous Federal Reserve rate hikes and geopolitical tensions, hindered this near-market-equilibrium development from driving the prospects of the natural rubber market, the report highlighted.
The world natural rubber market size was valued at US $ 34,132.98 million in 2022 and is expected to expand at a CAGR of 10.65 percent, reaching US $ 62,650.7 million by 2028.