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Asian physical rubber prices were mixed on Wednesday, with prices of most grades remaining firm despite a fall in Tokyo Commodity Exchange futures contracts. Most producers were still asking high prices because raw material remained expensive, traders said.
Latex supply in Thailand and Malaysia, the number one and number three producers, is improving as most farmers resume tapping after a bout of bad weather. But prices of USS3, the raw material for export rubber sheet, remained firm as less unsmoked sheet is available in the market, traders said.
"Although latex output is rising, farmers need at least seven days to dry their rubber sheet and that's why we cannot lower our prices," a trader in Thailand's Hat Yai rubber centre said.

Copyright Reuters, 2007

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