Thai rubber futures ended mostly lower in thin trade on Monday, but tight supply is expected to keep prices from sliding further, brokers said. Overall volume rose to 140 contracts of benchmark ribbed smoked sheet number three (RSS3) from 34 on Friday. "Technical factors dominated the market. However, the price is not expected to slide further because of tight supply in the physical market," a broker at Agrow Enterprise said.
The July contract ended down 0.1 baht at 50.1 baht per kg, with the number of contracts traded rising to 23 from seven. Open interest for the July contract dropped to 395 contracts from 409 on Friday.
Prices were expected to move in a narrow range, with the next key resistance at 50.60 baht and support at 49.90 over the next few days, brokers said.
The price of unsmoked sheet number three (USS3), the raw material for export-grade rubber sheet, has gained six percent in the past month, reflecting reduced supply during the wintering dry season.
USS3 was at 46.77 baht on Monday, versus 49 a year ago.
In the wintering dry season in Thailand, which runs through May, rubber trees shed their leaves and latex output declines, on average by 30 percent. On Thailand's Hat Yai physical market RSS3 was up 0.22 baht to 48.38 baht per kg.
On Singapore's SICOM the RSS3 April contract was at $1.31 against on Friday's $1.32 per kg.
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