In this potentially dangerous stock position, in fact, lies justification for a more hopeful frame of mind than Mincing Lane feels inclined to adopt at present. Though the Malayan and NEI. exports indicate the probability of an adequate, and even abundant, supply of rubber for the remainder of this year, it does not follow that the present slightly unsteady' price structure will be further weakened.
Current market conditions are far from normal, and while consumers are keeping their purchases at a minimum, producers are not pressing their rubber for sale, But, sooner or later, trade buying must revive, and though offerings will then become freer, the weight of the increased supplies need not necessarily involve any price weakness,.provided that: consumers take the opportunity to replenish their stocks. Consumers, in the past, have not always pursued a very intelligent policy in regard to their stocks. They have lived for fairly lengthy periods on their stocks and have forced producers to curtail supplies to prevent a collapse in prices.
The.return of consumers to the market has often, in consequence, revealed an inadequate supply and prices have spurted strongly. But if consumers have profited from recent experience, they will seize the opportunity that promises shortly to -become available to restore their stocks. In that event, the autumn of this year will probably see prices established on a higher plane, though prices are not likely to become in any way excessive. The trend of prices in the more distant: future, however, is another matter, for if consumption continues to expand at the rate of the last few years, the question will again be raised of the adequacy of existing planted areas.
Text read from the printed page and cleaned; old type leaves the occasional error.