Rubber market to be rangebound next week

by **Cals** Mon 14 Apr 2014, 00:30

Published: Saturday April 12, 2014 MYT 10:29:00 AM
Updated: Saturday April 12, 2014 MYT 10:31:54 AM
[size=40]Rubber market to be rangebound next week[/size]
KUALA LUMPUR: The Malaysian rubber market is expected to be rangebound next week on the back of current firmer trend of the ringgit against the US dollar.
On the local front, export data released by the Department of Statistics Malaysiaboosted positive sentiment for the soft commodity.

Malaysia's natural rubber exports in February rose 12,945 tonnes or 21 per cent to 74,452 tonnes compared with the same month last year.

It was exported mainly to China (56.3 per cent), the department said.

A local trader told Bernama that rubber prices in the local market were expected to be pressured by weak economic data from China next week.

"A weaker-than-expected China's gross domestic product (GDP) due for release on April 16 will prompt fears over demand in top buyer China, the world's second-largest economy," he said.

Additionally, the local market would likely move in tandem with the Tokyo Commodity Exchange (TOCOM), he added.

For the week just-ended, the market was traded amid bearish sentiment on strong local currency against the greenback.

On a Friday-to-Friday basis, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 at noon declined 16 sen to 581 sen a kg while latex-in-bulk decreased 11 sen to 483 sen a kg.

The 5pm-closing price for tyre-grade SMR 20 fell 20 sen to 577 sen a kg while latex-in-bulk dipped 12.5 sen to 481 sen a kg. - BERNAMA