Rubber market may extend gains

The Malaysian rubber market may extend gains next week due to tight supply of raw material.

“The market is concerned over the tight supply of raw material,” a dealer said.

Buyers are worried over low production in producing countries, namely Malaysia, Thailand and Indonesia. The rainy season in some parts of Malaysia is
also a factor for the anticipated better market.

The dealer also expected a quiet market next week with players taking a wait-and-see attitude.

Another dealer, however, was concerned over the eurozone worsening debt problem. “This factor could affect the local rubber market,” he said.

He added that the market would take cue from the movement on the Tokyo Commodity Exchange (TOCOM) and the Shanghai Futures Exchange next week.

For the week just ended, the market was weak on the first day of trading but was on the uptrend for the rest of the trading days due to tight supply of raw material and the steady performances of TOCOM and Shanghai Futures Exchange.

On a weekly basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added 21 sen per kg to RM1,409 sen per kg from 1,388 sen per kg while latex-in-bulk increased 4 sen to 874 sen per kg from 870 sen per kg.

The unofficial sellers’ closing price for tyre-grade SMR 20 rose 22.5 sen to RM1,409.5 sen per kg from 1,387 sen while latex-in-bulk gained six sen to 876.5 sen per kg from 870.50 sen per kg

Source: Business Times