Rubber Market Expected To Trade Slightly Higher Next Week Due To Weather Uncertainties
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Feb 15 (Bernama) -- The Malaysian rubber market is expected to trade slightly higher next week due to weather uncertainties caused by climate change leading to rubber tree leaves falling, said industry expert Denis Low.
He expects the uncertainties to last until March or early April -- when the leaves start falling, and it will mean a lower yield of latex.
“Some regions are experiencing it already, while others are not. This phenomenon is creating uncertainty in rubber production, which may cause market movements to be volatile,” he told Bernama.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association expects the rubber market to trade higher next week due to concerns over limited natural rubber supply.
The association said the price uptrend could continue as rubber production areas enter the wintering season, thus affecting harvesting and supply.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 31.0 sen to 921 sen per kilogramme (kg), while latex in bulk declined by 2.0 sen to 687 sen per kg.
-- BERNAMA