COMMODITY PRICE INDEX

COMMODITY PRICE INDEX Rubber prices in Japan have enjoyed a temporary bounce after the International Natural Rubber Organisation (INRO) postponed a decision on sales from its 138,000-tonne stockpile until October 9th. Traders in Asia, speculating that INRO would sell rubber and force prices down, had curtailed purchases. Many have now been forced to buy. When the global rubber pact collapsedlast October, INRO's council had agreed to release the stock in tranches of up to 34,000 tonnes a quarter at prices above $700 a tonne, an amount exceeding purchase and warehousing costs. All stocks were to be sold by next July, but low world prices scuttled the plan. Indonesia, Malaysia and Thailand now want INRO to lower its selling price. Malaysia and Thailand have already set aside funds to buy up the rubber when it finally reaches the market.