Thai rubber futures ended slightly higher on Monday, with dealers crediting lower trading margins for luring more players into the market.
Overall trade on Thailand's first commodities futures exchange more than doubled to 63 RSS3 rubber contracts from 30 contracts on Friday. The most-active December contract finished at 53.3 baht per kg from 53 baht on Friday.
The number of contracts traded rose to 26 from seven. "Overall sentiment is improving. More speculators were in the market," said one broker from Hong TA Futures.
"The lower margin has also attracted retail investors. We expect trade volume to rise further over the coming days." Brokers have cut the initial margin to 25,000 baht ($615) per contract from 40,000 baht since last on Thursday.
Thailand, the world biggest rubber producer and exporter, opened its first commodity futures exchange on May 28, allowing brokers to trade for ribbed smoked sheet number 3 (RSS3).
Thailand's key buyers are Japan, China and the United States.
Trading hours is 10.30 am-12.00 pm (0330-0500 GMT) with September, October, November and December delivery contracts. In Singapore, Sitcom's RSS3 September contract was quoted slightly higher at $1.33 per kg (54 baht/kg), versus on Friday's $1.32.
RSS3 at Thailand's Hat Yai physical market was at 53.53 baht per kg from 53 baht on Friday.
The price of unsmoked rubber sheet, the raw material used for export-grade rubber sheet, was at 52.09 baht per kg, up from 52 baht on Friday. AFET has said it would also begin trading five percent broken rice grade in August.
In company news, a weekend fire destroyed some 120 tonnes of RSS rubber sheet worth six million baht at a warehouse owned by Sri Trans Agro Industry. "There was a fire accident at two smoking rooms, which contained about 120 tonnes of rubber sheets," the company said in a statement.
Brokers said the quantity of destroyed rubber was small and would have little impact on prices in both the physical and futures markets.
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