malaysiangKUALA LUMPUR, The rubber market is set to trade slightly higher next week due to heavy rainfalls in Thailand, said industry expert Denis Low.
He said the weather, which is expected to hamper rubber tapping activities, would help to support prices amid sluggish demands.
‘The Meteorological Department of Thailand has forecast increased monsoon activity and heavier rains in the next 10 days, with some areas expected to experience heavy rainfall.
‘(Nonetheless,) traders may be cautious as consumption remains sluggish to neutral,’ Low told Bernama.
Therefore, the market is likely to remain stable, and prices should be steady since there does not appear to be any increased demand or need for more stocks, he added.
Meanwhile, a dealer said Malaysian rubber prices would continue to track the performance of regional rubber futures markets, ringgit’s strength against the US dollar, and benchmark crude oil prices amid growing optimism for a United States (US) rate cut in September 2024.
‘Markets operators would c
ontinue to monitor updates on US and China economies, especially for cues on US interest rate cuts, while keeping a close watch on geopolitical conflict developments and global economic performance,’ she said.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 10 sen to 785 sen per kilogramme (kg) from 775 sen per kg a week earlier.
Meanwhile, latex-in-bulk declined by three sen to 628.5 sen per kg from 631.5 sen per kg previously.
At 5 pm, the MRB reference price for physical SMR 20 stood at 781 sen per kg while latex-in-bulk was at 629.50 sen per kg.
Source: BERNAMA News Agency
