Rubber Market Expected To Trend Higher Next Week On Stock Replenishment
By Zufazlin Baharuddin
KUALA LUMPUR, Oct 17 (Bernama) -- The Kuala Lumpur rubber market is expected to trend higher next week, supported by stock replenishment activities ahead of the monsoon season in November, December and January.
Industry expert Denis Low said market players might increase their stockpiles ahead of the monsoon season, providing support for demand and prices.
“The Thai Meteorological Department has forecast that upper Thailand will enter the cool season in the third week of October.
“As to Malaysia, the weatherman has forecast heavy rain, strong winds and lightning in several parts of the country,” he told Bernama.
He noted that periodic adverse weather conditions in some major rubber-producing regions have disrupted rubber productivity although the impact remains minor so far.
In addition, the Malaysian Rubber Glove Manufacturers Association (MARGMA) expects that tight raw material supplies may support rubber prices next week.
Meanwhile, a dealer said rubber prices are expected to remain influenced by weather-related supply disruptions and the seasonal recovery in raw material production in major producing countries.
“Market sentiment will also be shaped by movements in regional rubber futures, the ringgit against the US dollar, benchmark crude oil prices and developments in global economic and trade conditions,” she said.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased 28.5 sen to 1,032.5 sen per kilogramme (kg) while latex in bulk rose 21.5 sen to 790.5 sen per kg.
-- BERNAMA