Rubber Market Ends Higher As It Tracks Regional Gains

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, June 11 (Bernama) -- The Kuala Lumpur rubber market ended higher on Thursday, buoyed by gains in regional rubber futures markets and crude oil.

A dealer noted that Japanese rubber futures gained today as a weaker yen and higher oil prices spurred buying amid persistent concerns over El Niño affecting rubber harvests, but seasonally weak demand curbed the upside. “Crude oil prices jumped on Thursday as Tehran declared the critical energy chokepoint, the Strait of Hormuz, closed after the United States launched additional strikes against Iran and as President Donald Trump vowed even more attacks if no peace deal is secured,” he told Bernama.

At the time of writing, Brent crude fell 1.08 per cent to US$92.13 per barrel.

However, the dealer reckoned that further gains were capped by pressure on car demand in China and the West Asia conflict, which has led to mounting inflation pressure, reinforcing expectations that the US Federal Reserve could keep interest rates elevated for longer.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 rose 10 sen to 921 sen per kilogramme (kg), while latex-in-bulk increased by eight sen to 776 sen per kg.

-- BERNAMA