KUALA LUMPUR, Dec 19 – The Malaysian rubber market closed lower today, pressured by weaker sentiment in regional rubber futures markets, said a dealer.
He said the market was also dragged down by the benchmark crude oil price loss and the ringgit strengthening against the US dollar.
"Oil prices were mixed on Tuesday, with the US benchmark dipping while Brent extended gains from the previous session as attacks in the Middle East on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels,” he said.
Nevertheless, the dealer said further losses were capped by optimism for the US interest rate cuts in 2024 coupled with further economic stimulus and encouraging prospects from China.
It was reported that San Francisco Federal Reserve Bank president Mary Daly said that cuts to the US central bank’s benchmark rate were likely to be appropriate next year because of an improvement in inflation this year.
The Malaysian Rubber Board’s (MRB) price for Standard Malaysian Rubber 20 (SMR 20) was down 2.5 sen to 672.0 sen per kilogramme (kg), while latex-in-bulk decreased by one sen to 536.0 sen per kg.
At 5 pm, the reference price for physical SMR 20 stood at 673.5 sen per kg, while latex-in-bulk was at 536.0 sen per kg. — Bernama
