The Malaysian rubber market closed lower today, dragged by the stronger ringgit and fall in crude oil prices.
A dealer said the ringgit, which was quoted at RM4.2790 against the US dollar at 5 pm, dented the demand for the commodity.
“Besides, losses in crude oil prices made synthetic rubber cheaper, hence, reducing demand for natural rubber,” he said.
Benchmark Brent crude oil futures fell 1.7 per cent to US$$49.75 a barrel and US West Texas Intermediate crude oil futures declined 1.81 per cent to US$47.46 per barrel today.
The dealer added that the easier performance was also in line with the downtrend on the benchmark Tokyo Commodity Exchange (TOCOM) rubber futures which fell to a near seven month-low today.
“It was reported that TOCOM came under pressure after Shanghai futures market fell to the lowest level since August 2005,” he added.
At noon, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 eased 1.5 sen to 611 sen a kg and latex-in-bulk lost two sen to 631 sen a kg.
The unofficial closing price for tyre-grade SMR 20 fell nine sen to 612 sen a kg and latex-in-bulk was half-a-sen lower at 631 sen a kg.
