The Malaysian rubber market extended its upward trend to close higher today on reports Malaysia’s rubber and rubber product exports are expected to thrive for years to come.
A dealer said the comment by Minister of Plantation Industries and Commodities, Mah Siew Keong, that the rubber export market could be further strengthened boosted the sentiment.
Mah was quoted as saying yesterday the exports of rubber and rubber products were pivotal to the country’s revenue as they contributed about RM18 billion in export value and the figure was increasing year-on-year.
Meanwhile, a dealer said, the rise in price of local rubber was in tandem with the bullish Tokyo Commodity Exchange (TOCOM) and rising crude oil prices.
He said the benchmark TOCOM rubber futures jumped over four per cent today after oil prices reached a one-year high a day earlier to US$53.14 per barrel resulting from growing expectations of an output cut by Organisation of the Petroleum Exporting Countries members.
“The price outlook remains bullish as confidence in oil markets rises,” he added.
At noon, the Malaysian Rubber Board’s official physical price for SMR 20 surged 22.5 sen to 622.50 sen a kg while latex-in-bulk rose 4.5 sen to 478.50 sen a kg.
The 5 pm unofficial closing price for SMR 20 soared 22 sen to 634 sen, while latex-in-bulk was 5.5 sen better at 481 sen a kg.