Kuala lumpur: The Kuala Lumpur rubber market ended higher on Tuesday, supported by a regional uptrend in rubber futures markets, a dealer said. She noted that market sentiment was also lifted by concerns about dwindling raw materials in major natural rubber (NR)-producing countries due to the wet weather and positive Chinese economic data.
According to BERNAMA News Agency, further gains were, however, capped by falling crude oil prices and a stronger ringgit against the US dollar. Japanese rubber futures extended gains for a tenth straight session on Tuesday, supported by a weaker yen and concerns over potential production disruptions in Thailand.
The dealer explained that Thailand's meteorological agency had warned of isolated heavy thunderstorms in the southern rubber-producing regions from January 6-9. Globally, oil prices edged lower as market volatility eased after traders absorbed news of the United States capturing Venezuela's president.
She also mentioned that US manufacturing continued to contract for the tenth consecutive month, with tariff pressures still weighing on the sector. The Institute for Supply Management (ISM) reported that the US manufacturing Purchasing Managers' Index (PMI) came in weaker than expected at 47.9, below the 48.3 forecast, signalling possible weakness in the US dollar.
At 3 pm, Standard Malaysian Rubber (SMR) 20 gained 4.0 sen to 760 sen per kilogramme (kg), while latex-in-bulk rose one sen to 578 sen per kg.