Key Moments
- The Malaysian rubber market ended lower as regional rubber futures traded weaker.
- Sentiment was pressured by the United States Federal Reserve’s hawkish policy outlook and caution on inflation risks.
- Losses were partially limited by firmer crude oil prices, with Brent crude up 2.75 per cent to US$121.3 per barrel at the time of writing.
Fed Policy Tone Weighs on Rubber Market
In Kuala Lumpur, the rubber market closed in negative territory, with a trader attributing the decline primarily to weakness in regional rubber futures.
According to the trader, sentiment was further undermined by the United States Federal Reserve’s hawkish policy outlook. The trader noted that the Fed maintained its interest rates and adopted a cautious tone, with Chair Jerome Powell emphasizing that inflation risks remain elevated in the context of rising energy prices and dissent from three policymakers regarding its easing bias.
Crude Oil Strength Limits Further Declines
The trader added that firmer crude oil prices helped restrain deeper losses in the rubber market.
“Oil prices rose on Thursday on a report that the US is considering potential military action against Iran to break the deadlock in negotiations to end the war, increasing concerns of more supply disruptions to already curtailed West Asia exports,” said the trader.
At the time of writing, Brent crude increased 2.75 per cent to US$121.3 a barrel.
Malaysian Rubber Prices at the Close
By 3 pm, key Malaysian rubber benchmarks registered modest declines.
| Product | Price Movement | Closing Price | Unit |
|---|---|---|---|
| Standard Malaysian Rubber (SMR) 20 | Down 0.5 sen | 859 sen | per kilogramme (kg) |
| Latex-in-bulk | Down three sen | 751 sen | per kilogramme (kg) |
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