Kuala lumpur: The rubber market is expected to be cautiously bullish next week, supported by steady upstream price momentum. Malaysian Rubber Glove Manufacturers Association (MARGMA) said rubber prices are likely to extend their upward trend into next week amid tighter raw material supply and improved sentiment following the US Federal Reserve's decision to keep rates unchanged.

According to BERNAMA News Agency, the market is expected to be supported by gradual production reductions in some producing nations and anticipated downstream restocking ahead of the Chinese New Year. MARGMA noted that rubber prices will move in line with regional futures markets, the ringgit, and crude oil prices.

Industry expert Denis Low concurred with MARGMA about a bullish rubber market next week, citing weather-related supply tightness. Incessant rainfall and the early onset of wintering among rubber trees have disrupted tapping activities, resulting in reduced supply. Low attributed these disruptions to climate change, emphasizing its unpredictability.

Supply disruption has already started to push prices and demand higher, with buying interest becoming more active, particularly from China. Low observed more vigorous buying from China ahead of their long Chinese New Year holidays. He also highlighted that geopolitical developments in Europe and the Middle East contributed to market uncertainty and could further influence demand if tensions escalate.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) rose 6.5 sen to 764.50 sen per kilogramme, while latex in bulk decreased 0.5 sen to 577.50 sen per kg.