Rubber stocks at the Colombo Auction this week went unsold for the very first time in history as prices came down drastically and plantation companies opting to withdraw from the sale.
Asia Siyaka Brokers stated that there was approximately 200,000 kg of rubber on offer this week and not one stock was sold causing a grim situation at the auction this week.
Prices of rubber of the best grades that were sold at Rs.625 last week crashed to Rs.450 in the opening bid and it remained the same for all stocks. This led to companies deciding to not sell at these rates.
The lower grades dropped from Rs.480 the previous week to Rs.315 at this week’s auction as a result of which nothing was sold and there is an expectation of a stabilisation of the local currency, which recently gained against the US dollar.
The rupee appreciation and the subsequent crash in the prices have taken the plantation companies by surprise, brokers pointed out. This is the very first time that not one single lot was sold, brokers said. (SD)