Prices were flat at Sri Lanka's rubber auction this week and brokers expect little change in coming weeks despite expectations of a fall in output with the start of the rainy season in March, brokers and dealerssaid on Friday. "In March we are heading for a lean period. There is normally a drop in volumes because of the rains. But prices should be steady on continued demand," said Damitha Perera, a broker at Forbes and Walker Commodity Brokers in Colombo.

Heavy rains would prevent significant quantities of rubber from coming into the market, as it will disrupt tapping and restrict production of dry rubber.

A total of 397 metric tonnes of latex crepe, 90 metric tonnes of scrap rubber and 56 metric tonnes of sheet were up for sale this week.

Copyright Reuters, 2005