Rubber prices set to be firmer

Malaysian rubber prices are likely to trend firmer next week while tracking regional futures markets.

Dealers said the tight supply situation, Thailand's price-support plan and firm oil prices were expected to lend support to the commodity.

Thailand, the world's biggest rubber producer, has approved a 15 billion baht plan to prop up the price of locally-grown natural rubber to 120 baht per kg (100 bath = RM9.7).

Meanwhile, the US Federal Reserve's announcement to hold a low interest rate regime was expected to help create better sentiment though the US GDP data would remain a concern among traders, a dealer said.

On a weekly basis, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 gained 15.5 sen to 1,139.5 sen per kg from 1,124.0 sen per kg perviously while latex in bulk increased by 39.0 sen to 747.0 sen per kg from 708.0 sen per kg.

The unofficial closing price for tyre-grade SMR 20 eased 1.0 sen to 1,131.5 sen per kg from 1,132.5 sen per kg last while latex in bulk rose 33.0 sen to 747.5 sen per kg from 714.5 sen per kg. -- Bernama