El Nino is expected to reduce the supply of rubber in Southeast Asia next year

The coming El Nino weather phenomenon and social turmoil in Southeast Asia could be cut next year's rubber supply and push up prices.

Tetsu said that tight supply will only increase the pressure on prices because the commodity with the growing number of investors, as well as China and the United States increased demand for next year's global demand for rubber is expected to rise.

Because of warmer weather, the Southeast Asian countries rubber supply may not be stable, and therefore the price will be very strong.

Thailand, Indonesia and Malaysia's natural rubber output accounts for more than 70% of the world. Earlier this year, the supply shortage to promote the Tokyo Commodity Exchange (TOCOM) indicators period rose to 26-year high of rubber per kg 324.5 yen. Since the price has dropped since June, is currently hovering at about 224.8 in the vicinity. Natural rubber prices since 2001 has gained more than 300%.

U.S. weather officials predicted that El Nino will peak in the next few months. El Nino may lead to Australia, Indonesia and the Philippines to drought.

Tetsu said: "In order to ensure a stable supply of rubber, in addition to weather disasters, we also need to pay attention to Indonesia and Thailand next year's social stability."