Kuala Lumpur:The rubber market in Kuala Lumpur closed on a positive note on Monday, with Standard Malaysian Rubber 20 (SMR 20) rising by 13.5 sen to 1,074.5 sen per kilogram, marking its highest level since May 9, 2012.

According to BERNAMA News Agency, the rise in prices was bolstered by regional rubber futures and concerns over supply due to ongoing heavy rainfall in Thailand, which is predicted to persist until mid-October. Additionally, there is speculation about a stronger El Nino that could last into early 2027.

Malaysia's Department of Statistics reported a 5.7 percent year-on-year decline in natural rubber production, with output dropping to 29,510 tonnes in August 2026 from 31,285 tonnes in August 2025. This indicates a decrease in annual production despite a monthly recovery.

However, market gains were somewhat limited by factors such as lower crude oil prices, a slightly stronger ringgit against the US dollar, geopolitical tensions in West Asia, and continued weakness in China's domestic passenger vehicle sales.

In other developments, bulk latex witnessed an increase of eight sen, reaching 777 sen per kilogram by 3 pm.