KUALA LUMPUR, Dec 26 (Bernama) -- The local Standard Malaysian Rubber 20 (SMR 20) market traded sharply higher to a one-week high mirroring regional rubber futures markets supported by gains in benchmark crude oil prices.
A dealer said market sentiment was also boosted by fresh stimulus measures from China amid traders' concerns about tight supply in major natural rubber (NR)-producing countries including Malaysia and Thailand due to prolonged wet weather.
“Nevertheless, further gains were capped by a stronger ringgit against the United States (US) dollar amid thin trading due to festive holidays and (the) year-end (period),” he told Bernama.
The dealer noted that in Thailand, rubber farmers in the upper regions should be bracing for crop damage from Dec 26 to 27, while in the southern areas, heavy rains may cause flash floods from Dec 28 to 30.
Oil prices continued their gains on Thursday after the Christmas holidays, bolstered by new stimulus measures in China and a drop in US crude inventories.
At the time of writing, Brent crude oil prices increased by 0.39 per cent to US$73.88 per barrel.
According to the Malaysian Rubber Board, the price of SMR 20 rose sharply by 22.0 sen to 877.0 sen per kilogramme (kg) while latex in bulk dropped five sen to 707.5 sen per kg.
At 5 pm, the price of SMR 20 was 871.00 sen per kg while latex in bulk was 703.50 sen per kg.
-- BERNAMA
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