Rubber Market Likely To Trend Higher Next Week On Supply Concerns

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 11 (Bernama) -- The Malaysian rubber market is expected to trend upward next week amid supply constraints due to severe weather conditions, especially in major rubber-producing countries Thailand and Malaysia, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).

Rubber prices will be influenced by a combination of financial and environmental factors, including regional rubber futures and the exchange rate of the ringgit against the US dollar, the association said.

“Additionally, fluctuations in benchmark crude oil prices will also play a role,” MARGMA told Bernama.

A rubber dealer told Bernama that traders will be closely monitoring major global economic indicators, developments related to US trade tariffs, the US government shutdown, and ongoing geopolitical tensions.

“Moreover, weather conditions in key rubber-producing countries will remain a crucial factor in determining supply dynamics and price volatility in the near term,” the dealer said.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by eight sen to 739.5 sen per kilogramme (kg) while latex-in-bulk added 3.5 sen to 574.0 sen per kg.

-- BERNAMA