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Thai rubber futures rebounded on Wednesday as players covered short positions after contracts found support at 50.3 baht per kg, brokers said. Overall volume rose as 239 contracts of ribbed smoked sheet number three (RSS3) were traded compared to 222 contracts on Tuesday. The most active May contract settled at 50.8 baht per kg, up from 50.3 baht, with the number of contracts traded rising to 73 from Tuesday's 66. "Speculators bought contracts as they believed that prices had reached bottom," said one broker. Prices were likely to creep higher as there was room for players who took short-sell positions to take profit.
The price of unsmoked sheet number three (USS3), the raw material for export-grade rubber sheet, was quoted at 44.30 per kg, down from 45.30 baht on Tuesday.
On Thailand's Hat Yai physical market, RSS3 was at 46.75 baht per kg, down from 47.05 baht.
On Singapore's SICOM, the RSS3 December contract was steady at $1.24.

Copyright Reuters, 2004

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