Rubber market likely to trend higher next week on supply concerns
05 Nov 2022 11:26am
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Malaysian Rubber Glove Manufacturers Association (Margma) immediate past president Denis Low said incessant rainfall in the rubber-producing region helped push up rubber prices and demand.
"We expect rainfall to continue and this would hamper rubber tapping activities. We believe more stocking activities will take place, resulting in higher demand and prices.
"Meanwhile, a lower ringgit against the US dollar is also supporting the rubber prices as it makes the commodity cheaper to foreign buyers,” he told Bernama.
For the week just ended, the Malaysian rubber market trended higher supported by generally weaker
ringgit against the US dollar, gains in regional rubber futures and strong, higher crude oil prices, as well as positive sentiment brought about by the United States job data.
Nevertheless, further gains were capped by prospects of aggressive interest rate hikes by the US Federal Reserve (Fed) and contraction in Asia’s factory activity, especially in China owing to newly-imposed Covid-19 restrictions, a dealer said,
Moving forward, he said prices will continue to track the performance of regional rubber futures markets, ringgit to US dollar forex rate and benchmark crude oil prices amid prospects of further aggressive interest rate hikes by the Fed.
Market operators will also continue to monitor further developments on Covid-19 restrictions in China, he added.
On a Friday-to-Friday basis, Standard Malaysian Rubber (SMR) 20 rose 20.0 sen to 586.0 sen a kilogramme (kg) from 566 sen per kg, while latex-in-bulk added 19.0 sen to 481.5 a kg from 462.5 sen a kg a week earlier.
At 5pm, MRB’s closing price for SMR 20 stood at 586.5 sen a kg while latex-in-bulk was at 481.5 sen a kg. - BERNAMA
