Rubber prices close mixed on stronger ringgit versus US dollar

Rubber prices close mixed on stronger ringgit versus US dollar
Business & Markets 2013
Written by Bernama
Tuesday, 10 September 2013 17:33

KUALA LUMPUR (Sept 10): Malaysian rubber prices closed mixed today due to the strengthening of the ringgit against the US dollar, dealers said.

They said negative sentiments over the fall in the Tokyo Commodity Exchange (TOCOM) following profit-taking activities and weaker crude oil prices also weighed on the local rubber market.

In addition, it was reported that Thailand's National Rubber Policy Committee had agreed to double the subsidy to rubber farmers within a budget of 21.2 billion baht, in an effort to quell the threat of protests by the farmers.

Thailand is the world's largest producer and exporter of natural rubber.

The report said it remained unclear whether the proposed subsidy would appease some groups of rubber farmers who demanded a higher subsidy and threatened to rally again later this week if their demands were not met.

"Exporters commented that this is unlikely to affect international prices much because of an international surplus this year," the dealers said.

At noon, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 fell 10 sen to close at 807.50 sen per kg while latex-in-bulk gained 2.5 sen to 568.50 sen per kg.

The unofficial closing price for tyre-grade SMR 20 decreased 13 sen to 806 sen per kg while latex-in-bulk was unchanged at 569 sen per kg.