KUALA LUMPUR — The Malaysian rubber market is likely to rebound next week over tight supply due to the rainy season in most rubber producing countries, a dealer said.
He said the lingering impact of the ongoing rainy season is hindering rubber tappers from tapping rubber trees while the weather is seen as curbing production.
“Against this backdrop, it is very possible to see rubber prices shoring up as there will be a decline in rubber production in the next few months due to this erratic weather,” said the dealer.
The rubber market will also track the ringgit’s movement and crude oil prices next week which would continue to weigh on market sentiment.
For the week just ended, the local market swung between gains and losses before ending the week lower, driven by the ringgit’s strength and floundering crude oil prices.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 declined 10 sen to 561.50 sen a kg while latex-in-bulk slipped 12.5 sen to 495.50 sen a kg.
The 5 pm unofficial closing price for SMR 20 fell 14.50 sen to 561.50 sen a kg while latex-in-bulk declined 7.0 sen to 500 sen a kg.a
