Malaysian rubber market expected to be bearish next week

The Malaysian rubber market is expected to be bearish next week, on concerns over rising rubber stocks in China which could dampen demand from the republic, dealers said.

It was reported that rubber investories in warehouses from China rose 5.3 per cent to 62,965 tonnes from a week ago.

Dealers said the sentiment will also remain fragile amid volatility in global equities markets as investors watch over developments in the US presidential election next week and clues about how the devastating Hurricane Sandy could further impact the markets, including the commodities market.

During the week, rubber prices on the Malaysian rubber market were on a downward trend, as buyers were cautious after Sandy wreaked havoc in the east coast of the US and halted trading in markets.

The New York Mercantile Exchange (NYMEX), a commodity futures exchange, was closed on Monday and Tuesday as Sandy stormed the US.

On a week-to-week basis, the Malaysian Rubber Board's official physical price for tyre-grade SMR20 declined 8.50 sen to 860.50 sen per kg while latex-in-bulk lost 18 sen to 577.50 sen per kg.

The unofficial sellers' closing price for tyre-grade SMR20 however lost 16.5 sen to 860 sen per kg but latex-in-bulk dropped 22 sen to 575 sen per kg.