Rubber market closes higher on supply concerns, supported by Thai weather and Chinese manufacturing data

(1) The Kuala Lumpur rubber market closed higher on Wednesday, tracking gains in regional rubber futures markets as concerns about supply disruptions grew. (2) According to some traders, severe weather in Thailand has raised supply concerns, with heavy rains and floods affecting 26 provinces since September 16. (3) The trader added that more severe thunderstorms are expected from October 4 to 5, which may disrupt rubber tapping activities. (4) She noted that the improvement in China's manufacturing activity also supports market sentiment, as both the official and private sector manufacturing PMI indicated a return to expansion in September. (5) However, the strengthening of the ringgit against the US dollar, weaker US consumer confidence, a decline in US job vacancies, and rising expectations of a US interest rate hike have partially limited the gains. (6) At 3 p.m., Standard Malaysian Rubber 20 rose by 44.5 sen to 1,055 sen per kilogram, and bulk latex was up by 2.5 sen to 740 sen per kilogram. (7) Overall, market sentiment is dominated by supply-side concerns, with future focus on changing weather in Thailand and the sustainability of China's demand recovery.