KUALA LUMPUR: Continuing global economic uncertainities coupled with a weaker ringgit, easier equity market and depressing crude oil prices weighed on the Malaysian rubber market.
The local currency dipped to a five-and-a-half year low of RM3.55 against the US dollar while the benchmark Brent crude oil tumbled to under US$53 per barrel.
However, the undertone of the market remained fundamentally strong as production was expected to be considerably reduced in the coming months as a result of the ongoing monsoon season.
“However, the shortage in natural rubber production is a positive indicator for the industry, as it would lead to higher rubber prices later,” said a dealer, adding that many players were still away on extended holidays after Christmas and New Year.
The Malaysian Rubber Board noon price for tyre-grade SMR 20 was quoted 1.50 sen lower at 528 sen a kg while latex-in-bulk increased 4.5 sen to 391.5 sen a kg.
The 5 pm unofficial closing price for SMR 20 declined 0.5 sen to 529 sen per kg while latex-in-bulk was 1.50 sen higher at 392 sen per kg. — BERNAMA
