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Thai rubber futures rose on speculative buying on Wednesday as players bought contracts on expectations that expensive oil will boost price, brokers said.
Overall volume also rose as 88 ribbed smoked sheet number three (RSS3) contracts were traded, up from 76 on Tuesday. "Demand for natural rubber is expected to remain strong thanks to rising oil prices," said one broker.
Tyre producers can use either natural rubber or synthetic rubber derived from petrochemical feedstock. Synthetic rubber was quoted at $1.4 per kg on Wednesday. Thai RSS3 natural rubber sheet was at $1.25 per kg FOB.

Copyright Reuters, 2004

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