Rubber Market Ends Mixed, Tracking Regional Futures
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, July 8 (Bernama) -- The Kuala Lumpur rubber market closed mixed today, tracking regional rubber futures markets amid concerns over temporary supply disruptions in Thailand and a weaker ringgit against the US dollar.
A dealer said market sentiment was supported by higher crude oil prices and expectations of a less hawkish United States (US) Federal Reserve amid easing inflation concerns.
“However, gains were partially capped by weaker-than-expected US economic data and renewed geopolitical tensions in West Asia,” she told Bernama.
She noted that Japanese rubber futures were flat as expectations of recovering latex production balanced higher crude oil prices.
“On another note, crude oil prices climbed nearly two per cent following renewed US airstrikes on Iran and concerns over possible disruptions to West Asian oil supplies,” she added.
At the time of writing, Brent crude was up 6.18 per cent to US$78.74 per barrel.
Meanwhile, she said Thailand's heavy rain and flash flood warnings are expected to temporarily disrupt rubber tapping activities, tightening short-term natural rubber supply.
At 3 pm today, the price of Standard Malaysian Rubber 20 (SMR 20) increased by six sen to 892 sen per kg, while latex-in-bulk decreased by three sen to 733 sen per kg.
-- BERNAMA