RUBBER MARKET ENDS HIGHER ON OPTIMISM OVER CHINA'S STIMULUS

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Nov 15 (Bernama) -- The Kuala Lumpur rubber market ended higher on Friday, buoyed by rising optimism that China would increase its economic stimulus measures to prop up its economy, a dealer said. 

She said traders also reacted positively towards the delay of the European Union Deforestation Regulation (EUDR) and a stronger United States (US) economy.

“Nevertheless, further gains were capped by losses in crude oil prices and a stronger ringgit against the US dollar amid mixed regional rubber futures markets,” she said. 

The dealer highlighted that the European Union (EU) Parliament has approved the postponement of EUDR for another year, along with other amendments, thus companies can comply with the law to ensure that products sold in the EU are not sourced from deforested land.

She also noted that the US’ producer price index (PPI) rose by 2.4 per cent year-on-year in October.

“Month-on-month, the PPI increased by 0.2 per cent, aligning with projections. US Federal Reserve chair Jerome Powell said that the strength of the US economy provides the central bank more time to deliberate on potential interest rate cuts,” she said.

According to the Malaysian Rubber Board, the price of Standard Malaysian Rubber 20 (SMR 20) increased by 3.0 sen to 848.50 sen per kilogramme (kg), while the price of latex in bulk inched up by 0.5 sen to 677.50 sen per kg.

At 5 pm, SMR 20 stood at 857.50 sen per kg, while latex in bulk was at 680.50 sen per kg.

-- BERNAMA