KUALA LUMPUR: Rubber prices and demand are expected to trade steadily this week due to poorer yield, says an industry expert.
Malaysian Rubber Glove Manufacturers Association’s immediate past president Denis Low said this is ahead of the unusually early wintering of rubber trees from end-February until end-April.
He said the uncertainty caused by the latex yield may be affected by between 40% and 50%.
“The uncertainty caused by such intermittent wintering instead of a blanket wintering due to climate change may have a negative impact on the supply side, resulting in price volatility,” he told Bernama.
Low further said that climate change and monsoon period would increase the risk for diseases such as Pestalotiopsis, which appears during heavy rain, to develop.
The Pestalotiopsis infection results in rubber tree leaves to yellow and fall, lowering latex yields.
This weather-related condition affects rubber production. pushing up prices, Low said.
For the week just ended, the rubber market traded mixed, tracking regional rubber futures markets, oil prices movement, the US Federal Reserve (Fed) monetary policy decision and the positive sentiments from China’s improved economic performance.
On a weekly basis, the Malaysian Rubber Board’s (MRB) reference physical price for Standard Malaysian Rubber 20 eased 0.51%, or 30.5 sen to 594.50 sen a kg from 625 sen a kg last Friday.
Latex-in-bulk increased 2.33% or 12.5 sen to 549 sen from 536.5 sen a kg previously.
The Kuala Lumpur rubber market was closed on Wednesday, Feb 1 for the Federal Territory Day holiday.
It will also be closed today to replace Sunday’s Thaipusam. The market resumes operations tomorrow.
