Kuala lumpur: The Malaysian rubber market saw an upward close today, driven by consistent benchmark crude oil prices and ongoing worries about a natural rubber supply shortage, as per a dealer's insights. These concerns are attributed to unfavorable weather conditions in key producing countries.

According to BERNAMA News Agency, the potential for further interest rate cuts by the United States also positively influenced market sentiment. However, gains were restricted due to a mixed trend in regional rubber futures markets, especially as Chinese buyers were absent. Traders are currently assessing the impact of the ongoing U.S. government shutdown.

The dealer pointed out that oil prices experienced an increase on Friday following a fire at a major refinery on the U.S. West Coast. Despite this, she noted that prices are still likely heading for their sharpest weekly decline since late June. Additionally, Thailand's meteorological agency has issued warnings about heavy rains that could lead to flash floods from October 6-8, 2025.

Reports suggest that financial markets are increasingly confident in the U.S. Federal Reserve's commitment to continuing its rate-cutting trajectory. Markets are nearly fully anticipating a 25-basis point rate cut in October, which is expected to further boost market sentiment.

As of 3 pm, data from the Malaysian Rubber Board indicated that the price of Standard Malaysian Rubber 20 (SMR 20) rose by seven sen to 731.50 sen per kilogram, while latex-in-bulk climbed 2.5 sen to 570.50 sen per kg.