Tranquility on the internal front, but problems with the supply of latex.

The most important movements of the week were in the international market and led to an increase in the cost of latex imports in two ways. On the one hand, delays in production in Southeast Asia generated an increase in prices

 
On the other hand, the demand for maritime transport increases and, together with the blockades in the Red Sea, consolidates a very significant increase in freight rates.

Natural rubber prices hit three-year high.

The main cause is a lower than expected offer. Towards the end of May, a significant increase in latex supply usually begins to be noticed. However, these new shipments do not appear and the shortage of the product continues in the main markets, especially in Thailand where producers have been experiencing problems evacuating their production due to the rains.  Added to this are expectations of greater growth in the Chinese economy. The Chinese government's new stimulus measures were well received and in fact even the IMF revised China's growth outlook in 2024 (from 4.6% to 5.0%).

The rise in freight rates continues and they are already trading at double what they were at the beginning of the year on the Asia-South America route.

In addition to the Red Sea crisis, the current high rates are attributed to an unusual increase in demand in May. Some analysts associate this greater demand with an early start to the high season. This could also imply an early end to it, although in any case this will not happen until September-October.