SMR 20 Hits 5-Year High In Thin Trading

By Azizul Ahmad KUALA LUMPUR, Jan 27 (Bernama) -- The Malaysian rubber market closed higher in thin trading on Friday, with SMR 20 hitting its highest level since 2012, on supply disruption concerns, dealers said. A dealer said floods in the world's largest natural rubber producer Thailand were expected to boost the price of the agricultural crop that is vital to tyre production. "Due to the rainy season in the region, supply of natural rubber has impacted major producers, Malaysia and Indonesia, sending prices of the commodity soaring in the respective markets," he told Bernama. Another dealer shared that the SMR 20 price in the local market went up to a high of 1,139 sen a kg on Jan 26, 2012. "The benchmark Tokyo Commodity Exchange rubber futures that hit their highest in nearly four years this morning on firmer oil prices supported the bids at the local market. "But some traders were already away for the long Chinese New Year (CNY) break. Prices could continuously be traded higher next week as demand for the commodity remains intact," he added. At noon, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 breached the 1,000 sen mark again to finish at 1,005.5 sen a kg while latex-in-bulk advanced 13.5 sen to 800.5 sen a kg. The market was traded for half-day today and will remain closed on Monday in lieu of the CNY holiday on Sunday and will resume trading on Tuesday. --BERNAMA