Kuala lumpur: The Kuala Lumpur rubber market ended sharply lower for the third consecutive day, influenced by declines in regional rubber futures markets amid expectations of improved supply availability, a dealer stated.

According to BERNAMA News Agency, market sentiment was impacted by reports of increased Thai rubber shipments to China and a higher forecast for global natural rubber production in 2026 from the Association of Natural Rubber Producing Countries (ANRPC), indicating easing supply tightness. Thailand is offering 8,000 tonnes of front-month rubber cargoes to China, signaling greater near-term supply availability. ANRPC projected global natural rubber production to rise by 2.4 percent to 15.34 million tonnes in 2026, reinforcing expectations of a more comfortable supply outlook.

Additional pressure came from lower crude oil prices and expectations that United States interest rates may remain elevated for longer amid persistent inflationary pressures. The trader noted that lower Brent crude oil price forecasts reflected expectations of softer oil demand and weaker commodity prices. At the time of writing, Brent crude dropped by 1.76 percent to US$72.44 per barrel.

Persistent inflationary pressures in the United States strengthened expectations of prolonged high interest rates, raising concerns over global economic growth and commodity demand prospects. However, losses were partially cushioned by positive developments in the automotive sector, including the global expansion plans of one of China's leading automakers and a recovery in the United Kingdom's vehicle production and exports.

At 3 pm today, the price of Standard Malaysian Rubber (SMR) 20 decreased by 33 sen to 907.5 sen per kilogram while latex-in-bulk was down by 10 sen to 779.5 sen per kilogram.