Rubber to stay at current level next week
Malaysian rubber prices are likely to hover at the current level next week, a dealer said.
However, the undertone of the market remains bullish and stands to gain further following the government's announcement to allocate RM243 million for the replanting of rubber, oil palm and cocoa as well as forest plantations in the 2014 Budget.
Prime Minister and Finance Minister Datuk Seri Najib Razak presented next year's budget in Parliament on Friday.
"Budget 2014 is favourable to the commodities market and would affect the country's rubber prices.
"This would also depend on the regional market conditions and foreign exchange rates movement and prices of other commodities," the dealer said.
The rubber market would also likely follow the movement of prices on the Tokyo Commodity Exchange (TOCOM) as well as Thailand's and Indonesia's rubber markets next week, he added.
On a Friday-to-Friday basis, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 ended five sen lower at 737.50 sen a kg while latex-in-bulk eased seven sen to 527.50 sen.
The unofficial closing price for tyre-grade SMR 20 lost 11.5 sen to 728.50 sen a kg, while latex-in-bulk decreased eight sen to 526.50 sen a kg.-- Bernama