RUBBER MARKET LIKELY TO TRADE RANGE-BOUND WITH DOWNSIDE BIAS NEXT WEEK

The rubber market is expected to trade range-bound with downside bias next week as the weather has changed for the better with the continuous rain-free conditions, said an expert. Industry expert Denis Low said the conditions mark a better rubber supply situation in the weeks ahead. 'This will also means the price of rubber will be more equitable and not have a runaway effect like the previous few weeks ago,' he told Bernama. Meanwhile, he said the Thai meteorological department expects the La Nina effect to start from this month until January 2025 and bring more rain than usual to the northern and north-eastern regions until October. 'An increase in rainfall will hamper the rubber production,' he said. The Malaysian Rubber Glove Manufacturers Association (MARGMA) said prices are expected to continue to trend downwards alongside with the regional rubber futures market. MARGMA said the declining oil prices coupled with the soft US economic data will raise some concerns over long term demand that may continue to inhibit any upward price momentum. 'We believe that the supply constraints caused by bad weather in Thailand will reduce rubber yield and increase susceptibility to leaf diseases. And this may be able to turn around those unfavourable market conditions to some extent,' it added. According to a dealer, prices will continue to track the performance of regional rubber futures markets, the ringgit's strength against the US dollar and the benchmark crude oil prices amid Chinese demand concerns. 'Traders will keep an eye on further economic indicators from major economies amid hopes for more Chinese measures while monitoring any developments surrounding China-Europe tariff tensions and the ongoing geopolitics in the Middle East,' she said. On a Friday-to-Friday basis, the Malaysian Rubber Board's (MRB) reference price for standard Malaysia rubber (SMR) 20 decreased 6.5 sen to 779 sen per kilogramme (kg) from 785.5 sen per kg last week, while latex-in-bulk slid 29 sen to 679 sen per kg from 708 se n previously. At 5 pm, the MRB reference price for physical SMR 20 was 772.5 sen per kg, while latex-in-bulk was 675 sen per kg. The Kuala Lumpur rubber market will be closed on Monday, July 8, in conjunction with Awal Muharram replacement holiday and will resume operation on Tuesday, July 9. Source: BERNAMA News Agency