By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, Aug 29 (Bernama) -- The Kuala Lumpur rubber market is seen to remain firm with a slight upward bias next week, supported by expectations of limited supply of the commodity amid adverse weather conditions.
“Heavy winds followed by thunderstorms and rain had pelted down incessantly in some rubber-producing regions on some days. This is followed by uncannily hot weather conditions which are hampering productivity, causing lower yields and minor shortages, especially for dry rubber,” industry expert Denis Low told Bernama.
He said the weather-related supply constraints had pushed up dry rubber prices slightly, with farmers opting to hold back from selling bulk latex, while China emerged as the major buyer last week.
The Thai Meteorological Department has forecast heavy rain across 60 per cent of Bangkok as well as isolated heavy rain in parts of the northern, central, eastern, southern and western regions, while Malaysia has forecast hazy weather until National Day on Aug 31.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) has forecast that rubber prices could continue their uptrend next week, supported by the ongoing El Niño weather conditions affecting supply. It said rubber glove manufacturers would likely see softer market trading next week due to the National Day celebrations in Malaysia, while the mixed outlook for US inflation could provide some support to overall rubber trade movements.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) added 16.5 sen to 963.5 sen per kilogramme, while latex in bulk fell 8.5 sen to 688 sen per kilogramme.
The rubber market will be closed on Monday (Aug 31), in conjunction with National Day, and will resume operations on Tuesday.
-- BERNAMA