Rubber Market Ends Higher On Regional Futures Uptrend, Wet Weather

By Durratul Ain Ahmad Fuad and Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Jan 6 (Bernama) -- The Kuala Lumpur rubber market ended higher on Tuesday, supported by a regional uptrend in rubber futures markets, a dealer said.

She said market sentiment was also lifted by concerns about dwindling raw materials in major natural rubber (NR)-producing countries due to the wet weather and positive Chinese economic data.

Further gains were however capped by falling crude oil prices and a stronger ringgit against the US dollar.

“Japanese rubber futures extended gains for a tenth straight session on Tuesday, supported by a weaker yen and concerns over potential production disruptions in Thailand,” she told Bernama.

According to the dealer, Thailand’s meteorological agency had warned of isolated heavy thunderstorms in the southern rubber-producing regions from Jan 6-9.

Globally, oil prices edged lower as market volatility eased after traders absorbed news of the United States (US) capture of Venezuela’s president, she said.

She said US manufacturing continued to contract for the tenth consecutive month, with tariff pressures still weighing on the sector. 

“The Institute for Supply Management (ISM) reported that US manufacturing Purchasing Managers’ Index (PMI) came in weaker than expected at 47.9, below the 48.3 forecast, signalling possible weakness in the US dollar,” she added.

At 3 pm, Standard Malaysian Rubber (SMR) 20 gained 4.0 sen to 760 sen per kilogramme (kg), while latex-in-bulk rose one sen to 578 sen per kg.

-- BERNAMA