The Malaysian rubber market extended its upward trend to close higher today in anticipation that crude oil price may rebound.
A dealer said oil prices were in the range of US$52 per barrel today on growing expectations of an output cut by Organisation of the Petroleum Exporting Countries members.
“However, it was contrary to rubber futures at the Tokyo Commodity Exchange (TOCOM), which declined slightly, owing to profit-taking activities following a stronger yen against the US dollar,” the dealer told Bernama.
On the local front, Malaysia’s natural rubber (NR) stocks increased 3.4 per cent to 169,465 tonnes as at end-August 2016 compared with the previous month, the Statistics Department said.
“Consumption of NR inched up 0.2 per cent to 40,518 tonnes in August 2016 from the preceding month. The rubber glove industry remains as the main domestic users, accounting for 73.5 per cent,” it said.
At noon, the Malaysian Rubber Board’s official physical price for SMR 20 rose eight sen to 630.50 sen a kg, while latex-in-bulk rose seven sen to 485.50 sen a kg.
The 5 pm unofficial closing price for SMR 20 eased six sen to 628 sen, while latex-in-bulk was 3.5 sen better at 484.50 sen a kg.