The trend of short supply of natural rubber (NR) continues globally. During the first half of 2019, NR supply fell 8.3% to 5.853 million tonnes from 6.380 million tonnes a year ago. According to the latest report of the Association of Natural Rubber Producing Countries (ANRPC),the global NR supply outlook for 2019 is anticipated to fall by 0.5% to 13.814 million tonnes on a year-to-year basis.
Based on the preliminary estimates, the production of NR fell 15.7% in Thailand, 12.0% in Indonesia, 17.1% in China, 4.1% in India and 1.3% in the Philippines during the reference period. The fall in production was attributed to the downward revision made by Indonesia and Thailand respectively for 2019.
Nevertheless, the market has been speculated by the expectation on rates cut by the Federal Reserve, especially in the equity market. The Federal Reserve has then announced to remain the rate in the June meeting instead. The worries over the escalated trade war tension between China and the US has made the traders remain conservatives in a trading position, said the report.