The Malaysian rubber market is expected to be rangebound next week with prices expected to hover around current levels, a dealer said.
The local market was also likely to move in tandem with the Tokyo Commodity Exchange (TOCOM).
“Prices would highly depend on TOCOM and the foreign exchange rate between US dollar and the ringgit,” he told Bernama.
Howewer, reports that the Thai Government was planning to sell 200,000 tonnes of stockpile rubber and China’s poor demand may pressure prices downwards.
For the week just-ended, the market ended mixed to lower capped by expectation that major rubber producing countries would face a setback in supply due to the ongoing drought.
The Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 declined 17.5 sen to 602.5 sen a kg while latex-in-bulk decreased 4.0 sen to
495.5 sen a kg.
The unofficial closing price for tyre-grade SMR 20 fell 16 sen to 616.5 sen a kg but latex-in-bulk increased 3.0 sen to 498.5 sen a kg.