Rubber Market Ends Higher On Regional Futures Gains

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Oct 5 (Bernama) -- The Kuala Lumpur rubber market ended higher on Monday, boosted by gains in regional rubber futures markets, a dealer said.

He said the market sentiment remained bullish, with the uptrend intact, although lower liquidity during China’s National Day holiday could increase price volatility.

The dealer added that sentiment was also supported by fresh concerns over weather-related supply disruptions in Thailand, and reduced expectations for further Federal Reserve rate hikes following weaker United States (US) economic data.

“Thailand’s meteorological agency warned of heavy rain and flash floods from Oct 4-8.

“Meanwhile, the International Rubber Study Group (IRSG) said ageing trees and insufficient replanting could tighten long-term rubber supply as vehicle and tyre demand growth is also supporting prices,” he told Bernama.

However, gains were capped by lower benchmark crude oil prices and persistent geopolitical tensions.

At 3 pm, Standard Malaysian Rubber 20 (SMR 20) rose nine sen to 1053.5 sen per kilogramme (kg), while bulk latex increased 4.5 sen to 754 sen per kg.

-- BERNAMA