Rubber Market Expected To Trade In Cautious Mode Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, May 9 (Bernama) -- The rubber market is expected to trade in cautious mode, driven by tight supply due to the El Niño season and West Asia peace talks.

Industry expert Denis Low said the wintering season has ended, and weather conditions now appear favourable for rubber production to recover.

This is expected to ease earlier supply constraints and help stabilise prices as output improves.

“We can see some speculative tendencies by producers, processors and promoters in holding the prices, but they must be cautious as there are already signs of buyers and users pushing back. There must be an equitable solution for stability rather than a yo-yo situation. 

“For this trading week, we expect a stable yet cautious outlook for the rubber market, with both prices and demand likely to remain steady, albeit with a slightly softer bias,” he told Bernama.

Low also highlighted that Thailand’s Meteorological Department had predicted some thunderstorms and heavy rain in some areas, with possible unusual storms.

At the same time, the weatherman has forecasted thunderstorms, heavy rain and strong winds across multiple states in  Malaysia, he added.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) expects the rubber market to be volatile next week as the natural rubber supply will be affected by the ongoing El Niño season, which is said to be one of the strongest in a decade.

It said crop damage and flash floods are expected to continue next week, based on weather forecasts for rubber-producing countries.

“While Middle East peace talks may have lifted market sentiment, disruptions to global trade and inflation remain a concern,” it said.

On a Thursday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 23.5 sen to 882.50 sen per kilogramme (kg), while latex-in-bulk increased five sen to 756 sen per kg.

-- BERNAMA