Rubber Market Ends Slightly Higher On Stronger Crude Oil Prices
By Danni Haizal Danial Donald
KUALA LUMPUR, Oct 17 (Bernama) -- The Kuala Lumpur rubber market ended slightly higher on Thursday, supported by gains in the benchmark crude oil prices and weaker ringgit against the United States (US) dollar, a dealer said.
She said the market sentiment was also influenced by concerns over tight natural rubber (NR) supply due to adverse weather in producing countries.
“Nevertheless, further gains were capped by mixed performance in the regional rubber futures market amid ongoing geopolitical conflict in the Middle East and as traders responded to the latest statement by the European Union (EU) to implement the EU Deforestation Regulation (EUDR),” she told Bernama.
The dealer said oil prices edged higher today from two-week lows, with investors eyeing developments in the Middle East and China’s stimulus plans while waiting for the release of the official United States oil inventory data.
At 5 pm, Brent crude oil prices increased by 0.46 per cent to US$74.50 per barrel.
“Japanese rubber futures edged higher on Thursday, buoyed by a weaker yen and higher crude oil prices, although softer synthetic rubber prices capped gains,” she said.
She noted that the EU ambassadors agreed to delay the implementation of the bloc’s landmark deforestation law by a year till the end of December next year.
“The European Commission proposed the delay this month, after coming under intense pressure from some member states and major agricultural product exporters, such as Brazil and Malaysia,” she noted.
She added that large operators and traders will now have to comply with the EUDR by Dec 30, 2025, while smaller and mid-sized firms will have until June 30, 2026.
The Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) was up by 3.5 sen to 861 sen per kilogramme (kg), while latex-in-bulk remains at 756 sen per kg.
At 5 pm, SMR 20 stood at 855 sen per kg, while latex-in-bulk was at 755.5 sen per kg.
-- BERNAMA