Rubber Market Expected To Trade Higher Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Nov 15 (Bernama) -- The rubber market is expected to trade higher next week due to the onset of the Northeast Monsoon season, said industry expert Denis Low.

He said that rubber productivity is likely to be affected, as traders and consumers typically stock up ahead of the weather change as Malaysia is entering the Northeast Monsoon season from next week until March next year.

“However, there hasn’t been much stocking activity yet," he said, suggesting that there may be slight improvement in market demand and prices.

On the other hand, the Malaysian Rubber Glove Manufacturers Association (MARGMA) has provided a mixed but slightly bullish outlook for the rubber market next week.

It cited expected supply constraints and long-term demand optimism, despite the ongoing economic headwinds.

According to the association, rubber prices are likely to be supported by a decline in Malaysian natural rubber production in September, as well as the upcoming off-season for rubber production in China’s key growing regions, Yunnan and Hainan.

"Rubber prices will be influenced by regional rubber futures, the performance of the ringgit against the US dollar, and fluctuations in crude oil prices.

"Beside this, broader macroeconomic and geopolitical factors such as the United States-China trade developments, US interest rate outlook, the Russia-Ukraine conflict, and key economic data from the US and China will also play a part in shaping market direction," it said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 4.5 sen to 724.5 sen per kilogramme (kg), while latex-in-bulk fell by 2.0 sen to 568 sen per kg.

-- BERNAMA