Thai rubber futures drifted lower on Wednesday as players sold contracts on expectations that prices would drop further, brokers said. Overall volume fell as 147 contracts of ribbed smoked sheet number three (RSS3) were traded compared to 192 on Tuesday. The most active April contract settled at 47.2 baht per kg, down from 47.8 baht, with the number of contracts traded rising to 52 from 5.
Prices were expected to fall further as more supply hit the market due to the general absence of rain in Thailand's south, which encourages tapping, while there was no fresh demand from over seas, brokers said.
Prices were expected to rebound after reaching the key support at around 47.0 baht per kg, they said.
The price of unsmoked sheet number three (USS3), the raw material for export-grade rubber sheet, was at 41.99 baht per kg, down from 42.63 baht on Tuesday. On Thailand's Hat Yai physical market, RSS3 was quoted at43.44 baht per kg, down from 44.37 baht.
On Singapore's SICOM, the RSS3 January contract was at$1.17. The December contract expired on Tuesday and ended at$1.17. Thailand, the world's biggest natural rubber producer and exporter launched its first commodity futures exchange in May, allowing brokers to trade in RSS3.
January, February, March, April, May and June contracts were offered. Each contract is for five tonnes. Trading hours is 10:30 am to 15.00 noon (0330 to 0800GMT).