Asian physical rubber prices were mostly unchanged on Wednesday as volatility in the Tokyo futures market sent most players to the sidelines. "The market is uncertain because of supply, which depends on the weather, also because the Tokyo market is very volatile, tracking ups-and-downs of currencies," said a trader in Thailand's Hat Yai rubber hub.
Thailand's tyre grade RSS3 was traded at $2.42 a kg late on Wednesday, resulting in a fall in the offering to that level, he said. The physical market may stay tight due partly to a decline in exports from India, one of the fastest-growing countries, which is instead set to import the commodity more than expected.
India's rubber exports are likely to fall 55 percent in 2007/08 due to a drop in production and a rise in domestic consumption, a senior official with the state-run Rubber Board said on Wednesday. Trading of rubber futures on the Tokyo Commodity Exchange is halted on Friday for a national holiday and resumes on Monday.
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