Kuala lumpur: The rubber market is anticipated to operate in a cautious mode next week, influenced by restricted supply due to the El Ni±o season and ongoing peace talks in West Asia.

According to BERNAMA News Agency, industry expert Denis Low noted that the wintering season has ended, and favourable weather conditions are set to enhance rubber production. This improvement is projected to alleviate previous supply constraints and stabilize prices. Low commented on the speculative tendencies within the market, urging producers and processors to seek an equitable solution for stability amid signs of resistance from buyers.

Low further emphasized that the rubber market is expected to maintain a stable yet cautious outlook, with prices and demand likely to remain steady, albeit with a slightly softer bias. Additionally, he mentioned forecasts from Thailand's Meteorological Department predicting thunderstorms and heavy rain, while similar weather patterns are expected across various states in Malaysia.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) anticipates volatility in the rubber market next week, citing the ongoing El Ni±o season as a significant factor affecting natural rubber supply. MARGMA highlighted concerns over crop damage and flash floods in rubber-producing countries, despite positive sentiments from Middle East peace talks. The organization also pointed out the potential disruptions to global trade and inflation.

On a recent comparison, the Malaysian Rubber Board reported an increase in reference prices, with Standard Malaysian Rubber 20 (SMR 20) rising by 23.5 sen to 882.50 sen per kilogramme, and latex-in-bulk up by five sen to 756 sen per kg.