Rubber Market Ends Mixed

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, June 9 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Tuesday, improved market sentiment following easing geopolitical tensions in West Asia, but was weighed down by expectations of improving natural rubber supply conditions and lower benchmark crude oil prices, a dealer said.

At the time of writing, Brent crude declined 1.81 per cent to US$92.49 per barrel.

He told Bernama that Japanese rubber futures edged higher on Tuesday, supported by a weaker yen.

The dealer said that China's exports grew 19.4 per cent year-on-year, exceeding market expectations of 15 per cent, supported by strong demand, including automobiles.

Gains, however, were capped by expectations of increased natural rubber supply as tapping activity expanded in major producing countries.

Meanwhile, he said China's car sales declined 22.3 per cent year-on-year to 1.53 million units in May, extending an eight-month downturn in the automotive sector.

“Traders also remained cautious ahead of key United States (US) inflation data for clues on the Federal Reserve's interest rate direction.

“However, further losses were limited by stronger-than-expected Chinese export data and improved market sentiment following easing geopolitical tensions in West Asia amid severe El Nino and hot weather,” he said.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 decreased by 4.50 sen to 921.50 sen per kilogramme (kg), while latex-in-bulk increased by two sen to 764. 50 sen per kg.

-- BERNAMA