KUALA LUMPUR — The Malaysian rubber market is expected to trend higher next week on improved demand for the commodity following the bullish sentiment for oil prices, a dealer said.
The atmosphere was positive among oil producers as it was reported that Saudi Arabia would take possible measures to stabilise the global crude oil market.
“Improving global prices for oil, the raw material used in the production of synthetic rubber, would contribute to higher prices for natural rubber.
“However, with the expectation of a further appreciation of the ringgit, gains in the commodity may be capped next week,” he told Bernama.
The local rubber market would also continue to closely watch the movement of regional futures markets especially the Tokyo Commodity Exchange which was currently higher.
For the week just-ended, the local market was mostly lower, driven by the ringgit’s strength and weaker crude oil prices.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added one sen to 518.5 sen a kg while latex-in-bulk lost 23 sen to 430.0 sen a kg.
The 5 pm unofficial closing price for SMR 20 appreciated 11 sen to 526.0 sen a kg while latex-in-bulk declined 17 sen to 432.0 sen a kg.
