Bad Weather Conditions Likely To Boost Rubber Market Next Week
By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Sept 14 (Bernama) — The local rubber market is expected to trade higher next week due to uncertainties caused by bad weather conditions, which could boost both demand and prices, said industry expert Denis Low.
He noted that Typhoon Yagi had triggered severe flooding and landslides in the rubber producing region, along with heavy rainfall which hampered rubber production.
“The Thailand Meteorological Department forecasted more torrential rain nationwide from Sept 13, 2024, and urged residents to be cautious of flash floods and forest runoffs.
“Hence, the market is poised to see lower output during these rainy spells and this would push up stocking activities in addition to the usual replenishment exercise,” he told Bernama.
Similarly, the Malaysian Rubber Glove Manufacturers Association (MARGMA) expects the unfavourable weather conditions in major producing natural rubber countries and recovery in crude oil prices to support the uptrend in rubber prices next week.
However, it said further gains may be capped by mixed performance in the regional rubber futures markets, coupled with the stronger ringgit against the US dollar as traders remain cautious about the United States (US) Federal Reserve’s interest rate cuts and the upcoming US presidential election.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 24.50 sen to 812.50 sen per kilogramme (kg) from 788 sen per kg a week earlier.
Meanwhile, latex-in-bulk rose by 12.50 sen to 675.50 sen per kg from 663 sen per kg previously.
At 5 pm, the MRB reference price for physical SMR 20 stood at 815 sen per kg, while latex-in-bulk was at 677 sen per kg.
-- BERNAMA