Rubber mart to extend gain on thin supply

The Malaysian rubber market is expected to extend its gain into next week on the back of strong demand and thin supply.
A dealer said the dry weather cut supply in producing countries, leading to a tight supply condition globally.
The tyre-grade SMR 20 on Friday hit 1,717.5 sen per kg.
The dealer said the wintering season would also continue to support the commodity price to increase.

"Prices will likely decrease in early April as the wintering season is expected to end then, which will lead to production level to be back as usual," he said.
The local market was also expected to track the performance of regional markets, he added.
This week, the return of market players after the long Chinese New Year holiday boosted trading in the Tokyo and Shanghai futures markets, lending further support to the local rubber price to extend gains.
On a weekly basis, the Malaysian Rubber Board's official physical seller price for tyre-grade SMR 20 surged 71 sen to 1,717.5 sen per kg from 1,646.5 sen previously.
Latex in bulk rose 33 sen to 1,056.0 sen per kg from 1,023.0 sen.
The unofficial seller closing price for tyre-grade SMR 20 rose 69.5 sen to 1,717.5 sen per kg from 1,648.0 sen last week, while latex in bulk increased to 36 sen to 1,058.5 sen per kg from 1,022.5 sen. – Bernama
(Source: http://www.btimes.com.my/articles/20110212120634/Article/)