KUALA LUMPUR — The Malaysian rubber market is expected to trade higher next week given the bullish outlook for the commodity, dealer said.
He said that the rubber production incentive (IPG) announced by the Malaysian Rubber Board (MRB) on Friday is expected to boost market sentiment next week.
The incentive will be activated in December 2015 with the payment of 10 cent/kg for cuplump at farm-gate level (50 per cent dry rubber content) of which smallholders can make their claims based on their production in November starting Dec 1 until Dec 31, 2015.
Regionally, the International Tripartite Rubber Council (ITRC) is currently looking into measures to support rubber prices, including the possibility of curtailing exports next year.
Council members, Thailand, Indonesia and Malaysia have agreed to immediately begin a study on the implementation of the “agreed export tonnage scheme” for 2016. The study is expected to take place for one month.
On a weekly basis, the local market traded lower with the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 up one sen at 488 sen a kg while latex-in-bulk declined half-a-sen to 365.5 sen a kg.
The 5 pm unofficial closing price for SMR 20 added 5.5 sen to 487 sen a kg while latex-in-bulk was three sen easier at 362 sen a kg.
