Rubber becomes hot, plantations across the globe zooms

COCHIN (Commodity Online): Rubber farmers across the world are doing what they can do the most from their farm – over tap the rubber trees.
They do it because the prices are at its pinnacle and a correction could be round the corner. Output has increased because of this milking and Indonesia alone will be producing an estimated 2.972 million tonnes of rubber this year as against 2.736 million tonnes last year. Farmers in the world’s second largest Rubber producing region is expecting a correction any time but according to Indonesian Rubber Association (Gapkindo) Rubber prices will average $4.5 per kg this year even after a slight correction.
In the meanwhile, the Tokyo Rubber futures fell to a two week low as September contract fell 10.1 yen to settle at 425.0 yen per kg.
Rubber had struck $6 in the Indonesian market but then dropped on Middle East worries and the Japan Earthquake. Additionally most automakers in Japan are producing vehicles at half their production capacity which has put pressure on the stocks.
Thailand, Indonesia and Malaysia, the three top rubber producing nations had made an effort to jack up the prices on the worrying production hit in Japan.
According to International Rubber Study Group, demand for rubber across the globe, both natural and synthetic, is expected to rise to 26.1 million tonnes in 2011 from 24.4 million tonnes in 2010.
In the meanwhile many countries are now plunging into rubber production as they see value in it. Colombia has increased its rubber production ten times in the past decade. From merely countable acres, the estimated rubber production is now around 25,000 acres. Production in 2010 was around 3200 tons and this is likely to increase ten fold in another 10 years.

(Source: http://www.commodityonline.com/news/Rubber-becomes-hot-plantations-across-the-globe-zooms-38282-3-1.html)