Malaysia: Rubber prices likely to be rangebound next week

The Malaysian rubber market is likely to be rangebound in cautious trading amid concerns of still weak demand with the lingering European debt crisis, dealers said.

Market players, they said, will also look for cues at next week’s US Federal Reserve policy setting meeting which will provide some clues as to the state of the US economy and global economic growth.

“There is strong anticipation that the US may announce measures to spur economic growth which could bolster market sentiment in the commodities market,” a dealer said.

During the week, rubber prices were rangebound in cautious trading due to prevailing weaknesses in commodities markets weighed by the ongoing European debt crisis.

On Thursday, European Central Bank President Mario Draghi commented that the bank would do whatever is necessary to prevent a collapse of the eurozone.

This lifted sentiment on the commodities market, but market players are expecting this to be shortlived as the lingering financial problems in the eurozone still remain unresolved.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s official physical price for latex in bulk lost 19.5 sen to 639 sen per kg from 658.5 sen per kg.

SMR 20 decreased 27 sen to 892.50 sen per kg from 919.5 sen per kg.

The unofficial seller’s closing price for latex in bulk lost 17 sen to 641.50 sen per kg from 658.5 sen per kg.

SMR 20 declined 19.5 sen to 895.50 sen per kg from 915 sen per kg. — BERNAMA

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20120728124432/Article/index_html