The regional rally in natural rubber drives prices higher amid mixed bullish and bearish factors.

⑴ The Malaysian rubber market closed higher on Tuesday, following the upward momentum in regional rubber futures markets after China and the US extended their trade truce arrangement. ⑵ A trader stated that positive Chinese economic data and expectations that China’s growing auto exports will offset weak domestic car sales have further supported market sentiment. ⑶ However, falling crude oil prices, a slight strengthening of the ringgit against the US dollar, and moderately increased domestic rubber production as reported by the Malaysian Department of Statistics, have limited further upside in the market. ⑷ According to the Malaysian Department of Statistics, natural rubber production in September 2026 increased by over 7% month-on-month to 31,657 tons, up from 29,510 tons in August; year-on-year growth was nearly 19%, with 26,647 tons produced in September 2025. ⑸ As of 3 p.m., the Standard Malaysian Rubber 20 (SMR 20) price rose 14.5 sen to 970 sen per kilogram, while bulk latex fell 4.5 sen to 773.0 sen per kilogram. ⑹ The market was closed on Monday for a substitute holiday for Deepavali.