The Malaysian rubber market closed higher, with SMR 20 hitting the highest level in over 14 years.

⑴ The Kuala Lumpur rubber market closed higher on Monday, with Standard Malaysian Rubber 20 (SMR 20) rising by 13.5 sen to 1,074.5 sen per kilogram, marking the highest level since May 9, 2012.⑵ According to traders, gains were supported by regional rubber futures trends and supply concerns. Heavy rainfall in Thailand is expected to persist until mid-October, and El Niño may intensify and last until early 2027.⑶ The Malaysian Statistics Department announced on the same day that Malaysia's natural rubber production in August 2026 dropped by 5.7% year-on-year to 29,510 tons, compared to 31,285 tons in August 2025. Annual output declined despite a month-on-month recovery.⑷ Traders stated that the gains were partly capped by lower crude oil prices, a slightly stronger ringgit against the US dollar, and geopolitical tensions in West Asia.⑸ Bulk latex rose by 8 sen at 3 p.m., quoted at 777 sen per kilogram.⑹ Overall, weather disruptions on the supply side and declining output are supporting rubber prices, but demand-side and external factors are limiting upside potential. Ongoing attention is needed on rainfall in Thailand and the development of El Niño.