Prices at Sri Lanka's two-day natural rubber auction rose this week on solid demand from Japan and Singapore, but dealers warned on Friday unusually dry weather could signal a steep drop in volumes in the coming weeks.
"Some of the estates are finding it difficult to manufacture, especially the crepe, which requires a lot of water," said Damitha Perera, at Forbes and Walker Commodity Brokers.
He said estates were already experiencing wintering conditions that usually do not set in until February.
But prices were firm at this week's sale, with prices internationally improving, and strong demand after a lull over the holiday period.
A total of 843 tonnes of latex crepe, 98 tonnes of scrap rubber and 58 tonnes of sheet rubber were up for sale this week.
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