Rubber Market Likely To Rise Next Week On Supply Concerns

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Oct 25 (Bernama) -- The Malaysian rubber market is expected to trend higher next week as persistent heavy rains in major rubber-producing countries, namely Thailand and Malaysia, continue to hamper productivity and raise concerns over supply shortages.

Industry expert Denis Low noted that the Thai Meteorological Department had issued a storm warning for southern Thailand as heavy rains loom due to shifting monsoon patterns.

“In Malaysia, the Meteorological Department has issued a thunderstorm warning for several states. Regionally, Southeast Asia is experiencing an early inter-monsoon phenomenon, with strong winds and continuous heavy rain hampering rubber productivity,” he told Bernama.

Low added that fluctuating crude oil prices and the volatile US dollar could also influence market sentiment and demand.

“Such acute volatility represents uncertainty and may warrant both caution and concern among market participants. Thus, we may see a more measured approach to the trading of this commodity,” he said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 12 sen during the week to 748.50 sen per kilogramme (kg) while latex-in-bulk eased by one sen to 568 sen per kg.

-- BERNAMA