Thai rubber futures crept higher on Wednesday as players bought contracts on expectations of a further rise in prices, brokers said.
Overall volume also rose as 107 RSS3 ribbed smoked sheet number 3 (RSS3) contracts were traded, up from 74 on Tuesday. "Players continued buying contracts for the second day, hoping to take profits by selling when the price rises further in a day or two," said one broker.
The most active December contract finished at 49.8 baht per kg with 46 contracts traded compared to 49.2 baht and 31 contracts changing hands on Tuesday.
However, concerns about rising supplies would keep pressure on prices in the short term, brokers said. The price of unsmoked rubber sheet (USS), the raw material for export-grade rubber sheet, has been declining for almost two months due to rising supplies.
USS was 45.6 baht per kg on Wednesday, down from last week's 46 baht. It was between 50 and 51 baht this month and as high as 54 baht last month.