The Kuala Lumpur rubber market is expected to trade higher next week before stabilising, although supply and demand conditions are likely to remain volatile, with weather expected to influence production, industry expert Denis Low said.
He said heavy rain and strong winds in major rubber-producing regions could disrupt output, while speculative trading was also expected to remain active.
Thailand’s Meteorological Department has forecast thunderstorms, strong winds and heavy to very heavy rain in several parts of the country, while Malaysia’s Meteorological Department has issued similar forecasts for some areas.
Low said uncertainty over demand and prices, coupled with ongoing geopolitical tensions, could continue to influence commodity markets. Volatility in oil and gas prices and a stronger US dollar could also affect business conditions and trade balances.
The Malaysian Rubber Glove Manufacturers Association (MARGMA) similarly expects weather conditions, including flooding in Thailand and dry conditions linked to El Niño in Southeast Asia, to weigh on rubber production.
MARGMA said latex prices could remain firm, citing recent data from the Association of Natural Rubber Producing Countries indicating that global production may decline amid increasingly erratic weather conditions. However, trading sentiment could remain mixed due to the ongoing conflict in West Asia.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose 4.5 sen to 1,044.5 sen per kilogram, while bulk latex increased 19 sen to 749.5 sen per kilogram.
