RUBBER MARKET IS EXPECTED TO TRADE HIGHER NEXT WEEK

By Danni Haizal Danial Donald

KUALA LUMPUR, Sept 21 (Bernama) -- The local rubber market is expected to trade higher next week due to a rubber supply shortage influenced by uncertain weather conditions in rubber-producing regions, said industry expert Denis Low.

He said typhoon Yagi has hampered rubber tapping and reduced the latex yield.

“Thailand Meteorological Department (TMD) forecast heavy rainfall until next week due to a monsoon trough and the effects of an intensifying tropical depression.

“There could be some supply shortages in the next few weeks. In such a situation, there will be some interest in stocking up or replenishing activities, resulting in price volatility,” he told Bernama.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said mixed performances in regional rubber futures markets, a weak Chinese economy and a stronger ringgit against the United States (US) dollar could influence the market next week.

“Natural rubber prices this week continued on an uptrend, affected by unfavourable weather conditions in major producing countries, limiting the supply,” it said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 30.50 sen to 843 sen per kilogramme (kg) from 812.50 sen per kg a week earlier.

Meanwhile, latex-in-bulk rose by 14.50 sen to 690 sen per kg from 675.50 sen per kg previously.

At 5 pm, physical SMR 20 stood at 835 sen per kg, while latex-in-bulk was at 688 sen per kg.

-- BERNAMA