Trading in Thai rubber futures surged on Thursday with 111 contracts changing hands in the busiest day since Thailand's first commodities futures exchange opened in late May, dealers said.
Total volume, which jumped from 75 contracts on Wednesday, was expected to rise further as more speculators entered the market, brokers said. "More speculators bought long-term delivery contracts on expectations that the price would rise," one broker said of Thursday's session.
The most-active November contract ended unchanged at 53.1 baht per kg, but volume jumped to 46 contracts from eight contracts on Wednesday. "Some speculators had changed their positions by taking deferred contracts to avoid risk, while some hedgers still held September contracts waiting for the delivery," the broker said.
Thailand, the world's biggest rubber producer and exporter, opened its first commodity futures market on May 28, allowing brokers to trade ribbed smoked sheet number 3 (RSS3).
Brokers slashed margins last week in a bid to lure more investors into the fledgling market.
"The number of our clients is increasing and I think that would boost the volume in the near future," said another broker.
Thailand is expected to begin trading five percent broken rice grade in August. Trading hours are 10.30 am-12.00 pm (0330-0500 GMT) with September, October, November and December of RSS3 contracts offered.
In Singapore, Sitcom's RSS3 September contract was quoted unchanged at $1.32 per kg.
In Thailand's Hat Yai physical market, RSS3 was quoted at 53.9 up from 53.7 on Wednesday.