Rubber market expected to trade with upward bias next week

 
KUALA LUMPUR: The Malaysian rubber market is expected to trade range-bound with an upward bias next week.
 
Malaysian Rubber Glove Manufacturers Association (Margma) past president Denis Low told Bernama that it is wise to hold some stock ahead of the monsoon season.
 
“There are still reports of rainfall in many rubber-producing regions even ahead of the monsoon season.
 
“The incessant heavy rainfall is curbing rubber productivity and may trigger a shortage in the interim. It is certain that this upcoming seasonal monsoon may further dampen productivity,” he said.
 
He added that with climate uncertainty and the monsoon period, there will be an increased risk of disease development, such as Pestalotiopsis, which appears during heavy rain.
 
“Pestalotiopsis infection will cause the rubber tree leaves to turn yellow and fall off the tree, lowering latex yields. 
 
“The possibility of rubber trees being affected by Pestalotiopsis is bound to curtail rubber production, thereby creating a shortage,” he said.
 
Throughout the week, the local rubber market traded mixed, in line with regional rubber futures and China’s economic outlook.
 
The Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 24 sen, or 4.08 per cent, to 612.0 sen per kilogramme (kg) from last week’s 588.0 sen per kg, while latex-in-bulk fell 1.5 sen, or 0.32 per cent, to 465.0 sen per kg from 466.50 sen per kg previously.
 
At 5pm yesterday, the MRB reference price for physical rubber SMR 20 stood at 606.5.0 sen per kg, while latex-in-bulk was 462.0 sen per kg. – BERNAMA