Kuala lumpur: The rubber market is expected to trade sideways with a slight upward bias next week, supported by lower latex output due to the wintering period.

According to BERNAMA News Agency, industry expert Denis Low noted that rubber trees are entering a much earlier wintering period, which has begun to curb latex production and may lead to some degree of short supply. He mentioned that incessant rainfall during the falling leaf season has further weighed on output, compounding the supply tightness.

Denis Low explained that this lower output might push up prices in the interim. However, he observed less vigorous buying from China ahead of its long holidays for the upcoming Chinese New Year.

Meanwhile, a trader stated that the rubber market is expected to remain neutral to slightly positive in the coming week, supported by relatively tight global supply and steady demand from the tyre and industrial sectors, which may help limit downside risks. However, she mentioned that gains could be capped by mixed crude oil prices, currency fluctuations including a firmer ringgit, and continued uncertainty surrounding US monetary policy and broader global economic conditions. The trader also noted that trading activity is likely to be quieter due to the Chinese New Year holiday.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) dropped 3.5 sen to 757 sen per kilogramme (kg) while latex in bulk remained unchanged at 578.5 sen per kg.