KUALA LUMPUR – The Malaysian rubber market is likely to experience range-bound trading next week, with a bullish undertone, as traders return from the Hari Raya Aidilfitri holiday.
A dealer said the local market would also track the ringgit’s movement against the US dollar, as well as global crude oil prices.
“Rubber prices will move in tandem with those of other commodities, as well as regional futures markets like the Tokyo Commodity Exchange and Shanghai Futures Exchange,” he added.
The dealer said alongside the US-China trade tensions, investors are keeping their eyes on the crude oil production policy of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, as they meet in Vienna, Austria, on June 22-23.
“OPEC is expected to yield decisions on crude production that could shake up the market. This would result in traders applying a cautious stance on global commodities and equities markets outlook,” he added.
On a Thursday to Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 fell 6.5 sen to 533 sen per kg from 539.5 sen per kg, while latex-in-bulk rose 0.5 sen to 429 sen per kg from 428.5 sen per kg.
There was no unofficial closing prices for tyre-grade SMR 20 and latex-in-bulk on last Thursday as the market was open for only half-day trading.
Compared to prices on Wednesday, the 5 pm unofficial closing price for SMR 20 trimmed 13.5 sen to 533.5 sen per kg from 547 sen a kg, while latex-in-bulk lost 2.5 sen to 430 sen from 432.5 sen a kg.
