Malaysian rubber prices are expected to see an upward trend next week on expectations that the weakening of the yen will drive rubber prices higher on the Tokyo Commodity Exchange, dealers said.
A dealer said the Bank of Japan stimulus measures will push the yen down against major currencies.
He said the expectations of increasing demand from China will also keep prices elevated, especially as production will be affected by rainy season in major rubber-producing countries.
“However, the gains in the prices will be limited due to
disappointment over the deadlock over US fiscal talks to resolve its financial woes.
For the week just-ended, rubber prices were on uptrend
due to gains in regional rubber markets.
However, the trend was reversed on Thursday on concerns about US policymakers’ deadlock on fiscal talks.
On Friday, prices ended mixed trend as losses in regional equities market triggered selling.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s sellers’ official physical price for tyre-grade SMR 20 increased 11 sen to 881 sen per kg, while latex-in-bulk rose six sen to 581.50 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 improved 6.5 sen to 881 sen per kg and latex-in-bulk rose 1.5 sen to 580 sen per kg.
BERNAMA
