Global rubber output seen up 2.6 percent

Global natural rubber output is expected to rise to 10.529 million tonnes in 2012, up 2.6 percent from 2011 because of better yields in some key growers, the Association of Natural Rubber Producing Countries (ANRPC) said on Wednesday.
In early February, the ANRPC pegged 2012 production at 10.450 million tonnes. It also revised last year's output to 10.262 million tonnes from 10.127 million tonnes estimated earlier.
"From an estimated 2.1 million hectares of yielding area, having an average yield of 1,780 kg a hectare, Thailand is expected to produce 3.740 million tonnes in 2012, up 4.7 percent," said the ANRPC, referring to the world's largest producer.
"That takes the country's pie in ANRPC's total output to 35.5 percent," said the group, which collects data from member countries.
The ANRPC's members include Thailand, Indonesia, Malaysia, Vietnam, Cambodia and Sri Lanka. Member countries account for more than 90 percent of global output and exports.
Output in second-largest producer Indonesia is likely to fall 1.4 percent to 2.923 million tonnes this year due to an expected marginal decline in the average yield and yielding areas.
"More than 60 percent of the country's yielding trees are over-aged and low-yielding," said the ANRPC.
"With about 3.466 million hectares of land currently being occupied by the crop, the country offers tremendous potential for increasing the output if the large extent of low-yielding trees is uprooted and replanted with improved clones."
Third-largest producer Malaysia could churn out 1.0 million tonnes of rubber in 2012 from 996,000 tonnes in 2011.
"About 20,600 hectares of trees planted during 2005 and a small portion of 20,200 hectares planted during 2006 can reach the yielding girth this year," it said. "But, trees from 40,000 hectares will be uprooted this year if the government's targeted replanting programme succeeds."
Physical rubber prices have gone up more than 19 percent in the past month after top producer Thailand approved a 15 billion baht ($496 million) plan to buy rubber from farmers at 120 baht per kg to support domestic prices.