Rubber mart set to be rangebound

Malaysian rubber is likely to trade rangebound moving into the New Year with external leads taking charge of the market, dealers said.
"It is hard to determine the movement of the market next week but I am sure it will take its leads from the rubber futures' price trend in the Tokyo Commodity Exchange (TOCOM)," a dealer said.
He added that there were some slight correction lately since Tuesday but prices would hover around the current prices moving forward.
"With wet weather conditions disrupting rubber tapping, the current supply constraints may last until next February," he said.

He further said prices would be supported by concerns over tight supplies and also the uptrend seen in crude oil prices.
During the week, rubber prices were on a downtrend since Tuesday due to some technical correction to move in line with regional prices.
On a Friday-to-Friday basis, the Malaysian Rubber Board's official sellers' physical price for tyre-grade SMR 20 ended 5.0 sen lower at 1,497.0 sen per kg while latex-in-bulk shed 4.5 sen to 986.0 sen per kg from 990.5 sen per kg.
However, SMR 20 ended the year with a gain of 35.9 per cent or 538.5 sen from the 958.5 sen registered on Dec 31, 2009, while latex-in-bulk rose 38.1 per cent or 376.5 sen per kg from 609.5 sen per kg recorded previously.
Meanwhile, the unofficial sellers' price for SMR 20 was at 1,501.0 sen per kg and latex-in-bulk stood at 985.5 sen per kg, the unofficial closing price for last week was not available due to early closure for Christmas eve.
The rubber mart was closed on Friday following Prime Minister Datuk Seri Najib Tun Razak's announcement, declaring it as a public holiday after Malaysia's maiden victory in the Asean Football Federation Suzuki Cup championship on Wednesday.
(Source: Rubber mart set to be rangebound http://www.btimes.com.my/articles/20110101094335/Article#ixzz19syX4hMV)