KUALA LUMPUR — The Malaysian rubber market is expected to be traded in a tight range next week on the back of stabilised demand and supply for the commodity. The SMR 20 is likely to trade within a range of between 485 and 495 sen per kg next week amid a mixed risk sentiment and latex-inbulk at between 355 sen and 365 sen a kg, said a dealer. “The local market would likely move in tandem with the regional futures markets like the Tokyo Commodity Exchange (TOCOM). “The rubber futures prices on TOCOM may rise on a stronger dollar against the yen, especially after the normalisation of the US monetary policy, but nevertheless, the gains could be capped by worries over the lower crude oil prices,” he said.
TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, could also turn quieter next week as traders have started taking the year-end leave or Christmas holiday, he added. For the week just ended, the local rubber market was traded almost flat, tracking the mixed performance of rubber futures prices on regional exchanges. On a weekly basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added half-a-sen to 490 sen a kg while latex in-bulk was flat at 360 sen a kg. The 5 pm unofficial closing prices for both SMR 20 and latex-in-bulk were unchanged at 493.5 sen a kg and 359 sen a kg respectively.
