Kuala Lumpur:The rubber market in Kuala Lumpur concluded on a positive note on Monday, with Standard Malaysian Rubber 20 (SMR 20) rising by 13.5 sen to reach 1,074.5 sen per kilogram, marking its highest level since May 9, 2012.

According to BERNAMA News Agency, the increase was driven by support from regional rubber futures and concerns over supply due to ongoing heavy rainfall in Thailand, which is expected to persist until mid-October. There is also a possibility that a stronger El Nino could extend into early 2027, further impacting supply.

Additionally, the Department of Statistics Malaysia reported a 5.7% year-on-year decline in Malaysia's natural rubber production, with output falling to 29,510 tonnes in August 2026 from 31,285 tonnes in August 2025. Despite this annual drop, a monthly recovery was observed.

However, the dealer noted that gains were limited by factors such as lower crude oil prices, a slightly stronger ringgit against the US dollar, geopolitical tensions in West Asia, and continued weakness in China's domestic passenger vehicle sales.

At 3 pm, bulk latex prices increased by eight sen to 777 sen per kilogram.