Kuala Lumpur:The rubber market in Kuala Lumpur is expected to experience volatility in supply and demand next week, with prices likely to rise before stabilizing. This fluctuation is largely attributed to weather conditions, as stated by industry expert Denis Low.

According to BERNAMA News Agency, Low highlighted reports of strong winds and heavy rainfall in major rubber-producing regions, impacting productivity. The adverse weather conditions are anticipated to continue, with hopes for improvement before the monsoon season beginning in November and December.

The market is also expected to see significant speculative trading, with volatility in both demand and prices persisting. The Thai Meteorological Department has predicted thunderstorms, strong gusts, and isolated heavy to very heavy rain in parts of Thailand. Similarly, Malaysia's weather authorities have forecasted thunderstorms, heavy rain, and strong winds in several areas.

Low also noted that the current geopolitical situation is affecting the prices of certain commodities. Volatile oil and gas prices pose significant challenges to businesses, while the strong US dollar could negatively impact the balance of payments.

The Malaysian Rubber Glove Manufacturers Association (MARGMA) echoed these concerns, citing weather conditions like El Ni±o in Southeast Asia and flooding in Thailand as factors affecting rubber production. They reported that latex prices may remain firm, as a recent report by the Association of Natural Rubber Producing Countries suggested a potential decline in global production due to erratic and drier weather conditions. Mixed trading sentiment is also expected due to ongoing conflicts in West Asia.

On a week-to-week basis, the Malaysian Rubber Board's reference price for SMR 20 increased by 4.5 sen to 1,044.5 sen per kilogram, while latex in bulk rose 19 sen to 749.5 sen per kilogram.