Tight supply to push up rubber prices

Malaysian rubber prices are expected to rise marginally next week on the back of a short supply with rain in major producing countries, dealers said.However, the gains would be capped as most traders would be reluctant to take heavy position due to the long Hari Raya break, they said. The market will be closed next Monday and Tuesday for Hari Raya. Trade will resume on Wednesday, September 23.With the rainy period in Thailand and Malaysia, supply will be short and this will push up prices, a dealer said.
The dealer said the local market movement would be much in line with the performance on the Tokyo Commodity Exchange (TOCOM) as well."Muslim workers in Asia would stop tapping next week due to Hari Raya. Thus, there will be further drop in production, which will also lend support to the local market," he added.On a week-to-week basis, the Malaysian Rubber Board (MRB) official physical noon price for tyre-grade SMR 20 declined by 10.5 sen to close at 729 sen per kg from last Friday's 739.5 sen while latex in bulk also decreased by 10.5 sen to 482.5 sen per kg from 493 sen previously. The unofficial closing price for tyre-grade SMR 20 dropped by 11.5 sen to 728.5 sen per kg from 740 sen while latex in bulk dipped 13 sen to 480.5 sen per kg from 493.5 sen last week. -- Bernama