Malaysian rubber prices are likely to ease slightly this week

KUALA LUMPUR: Malaysian rubber prices are likely to ease slightly on technical correction after sharp advances last week, dealer said.

He said the market was expected to track developments overseas, particularly China which is scheduled to release its November economic data.

Last week, rubber prices rose sharply on tight supply situation as output was disrupted by continuous rain.

The Malaysian Rubber Board's official sellers' physical price for tyre-grade SMR 20 broke its previous record high of 1,357.5 sen per kg to settle at 1,388.0 sen the highest in 38 years last Friday.

On a weekly basis, SMR 20 ended 37 sen higher compared with 1,351.0 sen per kg while latex-in-bulk rose 26 sen to 933 sen per kg from 907 sen per kg.

The unofficial sellers' closing price for SMR 20 gained 38.5 sen to 1,392.5 sen per kg while latex-in-bulk went up 27.5 sen to 937.5 sen per kg.

(Source: http://biz.thestar.com.my/news/story.asp?file=/2010/12/13/business/7607033&sec=business)