Rubber Market Likely To Trade Sideways With An Upside Bias Next Week
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Nov 29 (Bernama) -- The Malaysian rubber market is expected to trade sideways with a slight upward bias in cautious mode next week.
Industry expert Denis Low said heavy winds and incessant rains in major producing countries continue to spark concerns over supply, which would in turn support rubber demand and prices.
“It is obvious that rubber production has been halted during this period of the monsoon and will continue for a while,” he told Bernama.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the market next week is likely to be volatile, mainly due to the European Parliament’s decision to delay the European Union Deforestation Regulation, which will ease demand pressure.
“However, prices will continue to be highly impacted by concerns over natural rubber supply caused by heavy rainfall in major rubber-producing countries, particularly in Thailand due to severe flooding,” it added.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) declined by 4.5 sen to 726.0 sen per kilogramme (kg), while latex-in-bulk increased one sen to 578.0 sen per kg.
-- BERNAMA