Shanghai rubber futures increased nearly 2% today (25 July), up to 10.30 AM local time, apparently in response to a report that a leaf disease in Indonesia would bring down the country’s production in 2019 by 15%. Indonesia, the second-largest producer after Thailand, exported 3.09 million tons last year. It is estimated that Leptosphaeria leaf spot (Pestalotiopsis spp) disease would significantly reduce the country’s natural rubber production.

It is officially declared by the Indonesian Agriculture Ministry Director Kasdi Subagyono in Jakartha on Wednesday that the plant disease had affected at least 382,000 hectares of rubber plantations in the country.