Regional weakness and a strengthening ringgit pressure the Kuala Lumpur rubber market lower

⑴ The Kuala Lumpur rubber market closed lower on Tuesday, dragged down by weakness in regional rubber futures and the appreciation of the ringgit against the US dollar. Traders pointed out that extreme weather disruptions suppressed demand expectations for the rubber market, while Japanese rubber futures declined under pressure. ⑵ However, the continued tension in the Middle East has supported oil prices to remain firm, and concerns that El Niño may trigger supply disruptions have limited the downward space of rubber prices to some extent. ⑶ The ringgit was quoted at 4.0550/0590 against the US dollar, slightly higher compared to the previous trading day, further weakening the export competitiveness of ringgit-denominated rubber. At the close, the Standard Malaysian Rubber SMR 20 fell 5 sen to 914.5 sen per kilogram, and bulk latex prices fell simultaneously by 5 sen to 685.5 sen.