Rubber Market Likely To Track Regional Futures, Ringgit And Crude Oil Prices Next Week

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 17 (Bernama) -- The Malaysian rubber market is expected to track the performance of regional rubber futures markets, the strength of the ringgit against the United States (US) dollar, and benchmark crude oil prices, said a dealer.

The dealer said the outlook is influenced by concerns over tightening natural rubber supply in major producing countries due to the wet-weather season, as well as optimism over a potential US-China trade truce.

“Market players will be monitoring developments surrounding US trade deals while keeping an eye on Chinese economic stimulus plans,” the dealer told Bernama.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market is expected to trend upwards next week due to an anticipated spike in demand for stockpiling during the 90-day pause in tariff cuts.

MARGMA said the US-China tariff de-escalation, with a temporary 90-day reduction in tariffs, has somewhat improved global sentiment, and the outlook for the rubber market next week could see some positive signs.

The association also noted that oil prices have gained momentum; hence rubber prices will continue to be influenced by regional rubber futures, the ringgit’s performance against the US dollar and movements in benchmark crude oil prices.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 increased by three sen to 759 sen per kilogramme (kg) while latex in bulk was up 4.5 sen to 609 sen per kg. 

-- BERNAMA