Kuala lumpur: The rubber market is expected to trade higher next week due to the onset of the Northeast Monsoon season, said industry expert Denis Low. He noted that rubber productivity is likely to be impacted as traders and consumers typically stock up ahead of the seasonal weather change, with Malaysia entering the monsoon period from next week until March of the following year.

According to BERNAMA News Agency, there has not been significant stocking activity yet, indicating a possible slight improvement in market demand and prices. The Malaysian Rubber Glove Manufacturers Association (MARGMA) has presented a mixed but slightly optimistic outlook for the rubber market in the coming week. They cited potential supply constraints and long-term demand optimism, despite current economic challenges.

MARGMA has stated that rubber prices may be supported by a decline in Malaysian natural rubber production in September, coupled with the upcoming off-season for rubber production in China's main growing regions, Yunnan and Hainan. Prices will also be influenced by regional rubber futures, the performance of the ringgit against the US dollar, and crude oil price fluctuations.

In addition, broader macroeconomic and geopolitical factors such as the United States-China trade developments, the US interest rate outlook, the ongoing Russia-Ukraine conflict, and key economic data from the US and China will play roles in determining market direction. On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 4.5 sen to 724.5 sen per kilogramme, while latex-in-bulk decreased by 2.0 sen to 568 sen per kg.