Rubber Market Ends Mixed Amid Supply Concerns, Fed's Rate Decision

By K. Naveen Prabu

KUALA LUMPUR, July 30 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Thursday, supported by concerns over possible supply disruptions in major producer Thailand due to adverse weather forecast, a dealer said.

She said heavy rainfall in Thailand's rubber-producing regions had disrupted tapping activities and tightened short-term raw material supply, providing support to regional rubber futures.

The dealer said market sentiment was also supported by a sharp rise in crude oil prices amid escalating tensions in West Asia.

“Crude oil prices surged by about seven per cent following escalating West Asia airstrikes, raising concerns over potential supply disruptions and supporting sentiment across the commodity market,” she told Bernama.

Nevertheless, she said, gains were capped by cautious sentiment following the United States Federal Reserve's (Fed) decision to keep interest rates unchanged amid global economic uncertainty.

“The Fed kept its benchmark interest rate unchanged at 3.50 per cent-3.75 per cent, maintaining a hawkish stance and reinforcing higher-for-longer interest rate expectations,” she said. 

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) increased 3.5 sen to 878.5 sen per kilogramme (kg), while latex in bulk dropped five sen to 696.5 sen per kg.

-- BERNAMA