Kuala Lumpur:The rubber market in Kuala Lumpur is projected to trend higher next week due to supply constraints in rubber-producing regions as the monsoon season approaches.

According to BERNAMA News Agency, industry expert Denis Low has noted that unseasonal strong winds and rainfall have affected productivity in these regions, leading to reduced supply of both bulk and dry rubber. This situation is expected to lead to more vigorous buying and stocking ahead of November, with prices likely increasing in response to supply and demand dynamics.

Low also pointed out that the shortage of latex in bulk has led to speculative buying, which could further drive prices upward. Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) suggests that the rubber market will trade mixed and remain within a range next week, as market sentiment is influenced by developments in China, inflation expectations in the United States, and supply chain disruptions.

MARGMA highlighted that the reopening of China's market after the National Day holidays could boost buying interest. However, expectations of higher inflation in the US might lead to further interest rate hikes. Additionally, the aftermath of severe flooding in major producing regions such as Thailand continues to disrupt supply chains and logistics. The ongoing challenges associated with the European Union Deforestation Regulation (EUDR) may also shift trade towards less-regulated markets.

On a week-on-week basis, the Malaysian Rubber Board's reference price for SMR 20 increased by 16.5 sen to 1,061 sen per kilogram, while latex in bulk rose 19.5 sen to 769 sen per kilogram.