Rubber Market Expected To Trend Higher Next Week On Stable Supply, Demand

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Oct 31 (Bernama) -- The Kuala Lumpur rubber market is expected to trend higher next week, supported by stable supply and demand before the monsoon season.

Industry expert Denis Low said any oversupply would be easily absorbed by gentle stocking ahead of the coming Northeast Monsoon beginning from the end of November onwards.

“The Thai Meteorological Department (TMD) had forecasted heavy rain in 12 provinces and scattered thundershowers and isolated heavy rain in the Southern region.

“As to Malaysia, the weatherman warns of thunderstorms, heavy rain, and strong winds in several parts of the country,” he told Bernama. 

Meanwhile, Low said that despite geopolitical uncertainties, conditions in the rubber sector remained balanced, although sporadic heavy rainfall and irregular thunderstorms could occur.

However, he said these weather conditions were not alarming, as they typically occurred in the afternoon and did not disrupt early-morning rubber tapping.

“Current tapping yield is good, and supply is able to cope nicely with the usual replenishment and demand,” he said. 

He added that stronger demand from Europe for European Union Deforestation Regulation (EUDR)-compliant rubber had provided some support to prices, although the impact remained limited because the requirement applied only to the European market.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell five sen to 994.0 sen per kilogramme (kg), while latex in bulk fell 7.5 sen to 787.50 sen per kg.

-- BERNAMA