RUBBER MARKET ENDS HIGHER, SMR 20 HIGHEST SINCE 2017

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Dec 6 (Bernama) -- The Kuala Lumpur rubber market ended higher on Friday, with the price of Standard Malaysian Rubber 20 (SMR 20) reaching its highest level since 2017, which recorded 933.5 sen per kilogramme (kg) in April, a dealer said.

She said tight natural rubber (NR) supply concerns due to prolonged floods in several regions of major NR-producing countries, including Malaysia and Thailand, coupled with gains in regional futures markets, supported the commodity prices.

“Market sentiment was also boosted by strong United States economic performance. Nevertheless, further gains were capped by losses in crude oil prices and stronger ringgits against the US dollar,” the dealer told Bernama.

Thailand's meteorological agency warned of heavy rains that may cause flash floods from Dec 5-6, adding that "farmers should prepare for crop damage".

“Meanwhile, several rubber-producing states in Malaysia were badly hit by floods resulting from the continuous rains,” she said.

The dealer said oil prices edged lower on Friday, with weak demand in focus after the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) group postponed planned supply increases and extended deep output cuts to the end of 2026.

At noon, the Malaysian Rubber Board reported that the price of SMR 20 was up by 27.5 sen to 933.5 sen kg, while latex-in-bulk was up by 1.0 sen to 688.5 sen per kg.

At 5 pm, SMR 20 stood at 936.5 sen per kg, and latex-in-bulk was at 687.5 sen per kg.

-- BERNAMA