COMMODITY PRICE INDEX

COMMODITY PRICE INDEX Natural rubber prices have fallen nearly 15% in a month and for the first time in four years have dipped below the level at which the International Natural Rubber Organisation (INRO) can buy rubber on the open market to prop up prices. Thailand's biggest producer, its government, has been buying rubber for several months to support domestic prices, which are below smallholders' costs. The Thai government's purchases prompted further speculative selling of rubber. But prices may now stabilise. Other producers have been reluctant to sell at current levels, hoping that INRO's buying will push prices back up. And China is buying more rubber this year.