Thai rubber futures slipped on Tuesday as players took profits on recent gains, brokers said. Overall volume rose as 41 contracts of ribbed smoked sheet number three were traded, up from 37 contracts traded on Monday.
The most active February contract ended at 52.0 baht per kg, down from 52.4 baht on Monday, with the number of contracts traded rising to 13 from two.
"Trade was thin. Players sold contracts to take profits, partly following TOCOM's trend," said one broker referring to the Tokyo Commodity Exchange. "Psychologically, futures were hit after oil prices retreated."
US oil prices slipped for a second session on Tuesday on worries that high energy costs may crimp economic growth, but crude remained firmly above $50 a barrel on persistent fears of a winter supply crunch.
Thai rubber futures rose in recent days on expectations high oil prices would prompt a shift in demand to natural rubber from expensive synthetics derived from petrochemical feedstock's.
The price of Thai unsmoked sheet number three (USS3), the raw material for export-grade rubber sheet, was 47.64 baht per kg on Tuesday, down from Monday's 47.93 baht. On Thailand's Hat Yai physical market, RSS3 was 49.31 baht, little changed from the 49.32 baht quoted on Monday.
On Singapore's SICOM, the RSS3 December contract was steady at $1.27 baht per kg.
Thailand, the world's biggest rubber producer and exporter launched its first commodity futures exchange in May, allowing brokers to trade in RSS3.
November, December, January, February, March and April contracts were offered. Each contract is for five tonnes. Trading hours are 10:30 am to 12.00 noon (0330-0500 GMT), but are to be extended to between 13:30 pm and 15:00 pm (0630 and 0800 GMT) on November 8.
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