KUALA LUMPUR, Nov 30 (Bernama) -- The Malaysian rubber market is set to witness range-bound trading next week, with a strong bias to trend higher.
Malaysian Rubber Glove Manufacturers Association president Denis Low Jau Foo said continuous rain may affect stocks and boost prices upward.
"There was sporadic buying in the beginning of this week in anticipation of a longer monsoon season.
"The SMR 20 and bulk latex moved up and even though it closed at the week's low, it was a good week for the farmers," he told Bernama.
According to a trader, the market is expected to remain steady on optimism over an interim trade deal between the United States and China.
However, he said the market would continue to track the regional rubber market performance and oil prices.
In addition, investors are also keeping a close eye on China's upcoming purchasing managers' index release.
On Tuesday, Primary Industries Minister Teresa Kok Suh Sim said the rubber industry was expected to contribute RM41 billion in 2020, up from RM40 billion estimated for this year, driven mainly by the downstream sector including rubber glove.
She said it was in line with rubber glove industry's projection that export revenue would likely hit RM20.68 billion in 2020 from the RM18.2 billion expected in 2019.
Throughout the week just ended, the rubber market was mixed, tracking the the performance of regional rubber futures market, the United States-China trade war development, oil prices and the ringgit movement.
On a Friday-to-Friday basis, the Malaysian Rubber Board's reference physical price for tyre-grade SMR 20 decreased 5.0 sen to 576.0 sen a kg and latex-in-bulk eased 2.0 sen to 445.0 sen a kg.
The 5 pm unofficial closing price for tyre-grade SMR 20 was down 5.0 sen at 581.0 sen a kg and latex-in-bulk fell 2.5 sen to 447.0 sen a kg compared with the previous week.