KUALA LUMPUR: The Kuala Lumpur rubber market is expected to trade range-bound with a tendency to be slightly higher this week on the back of poorer yield due to the El Nino effect and climate uncertainty in the rubber-producing regions.
Malaysian Rubber Glove Manufacturers Association’s immediate past president Denis Low said the poorer yield may push up demand and trigger further stocking activities this week.
“Tappers are already experiencing 60-70 per cent yield, which may drop further when the trees are affected. The farmers are already lamenting that the hot weather is jeopardising their income,” he told Bernama.
Low said the current geopolitical situation is also affecting commodity prices.
“The volatile oil and gas prices can affect businesses while the strength or weakness of the United States dollar can be detrimental in the balance of payment.
“Such volatility represents uncertainties and may warrant caution or fear, hence have impacts on the rubber market,” he said.
On a weekly basis, the Malaysian Rubber Board’s (MRB) reference physical price for Standard Malaysian Rubber 20 (SMR 20) increased by 11 sen, or 1.82 per cent, to 616 sen from 605 sen a kilogramme (kg) registered on the previous Friday.
Latex-in-bulk rose five sen to 490.5 sen a kg from 485.5 sen a kg a week earlier.
At 5 pm on Friday, the MRB’s reference price for physical rubber SMR 20 stood at 612.5 sen a kg, while latex-in-bulk was at 490.5 sen a kg. – BERNAMA
