Palembang, South Sumatra (ANTARA News) – The price of natural rubber fell on weak demand in international markets amid protracted global crisis especially in Europe and the United States, analysts said.
The country exports most of its rubber production, therefore, the price at the farmer level has to follow the price developments in international markets, Sudarta , a researcher of the South Sumatra representative office of Bank Indonesia said.
“Currently it happens that the price of natural rubber shrinks in international market,” Sudarta said here on Tuesday.
He said the price of rubber fluctuated in the first half of 2013 and tended to fall on global economic slowdown.
Rubber for exports was priced at US2.14 per kilogram on 11 July, 2013 down from US$2.15 in the previous day , he said.
The selling price of latex to processing factory in the country was Rp18,223 per kilogram .
The price received by farmer already started to shrink early this year, Sudarta noted.
On the contrary, the price of crude palm oil began to climb early July from US$679 per ton to US$765 at present, he said.
“The trend is in contrary to gold price which remained unchanged at the level of US$1,369per ounce since early July down from US$1,685 in June, 2013. Meanwhile, the coal price had been relatively stable at US$67 per ton,” he said.
The three primary products are Indonesia`s major export commodities, and the country exports most of its production of the three commodities.
Indonesia is the world`s second largest producer of rubber and the largest producer of CPO , and it is the largest exporter of coal.
