Thai rubber futures slid on Monday due to technical sales in the absence of fresh demand and were approaching key resistance at 51.0 baht per kg, brokers said. Overall volume dropped as 74 contracts of ribbed smoked sheet number three (RSS3) were traded compared to Friday's 246. The most active September contract settled at 50.8 baht per kg, down from 50.9 baht, with the number of contracts traded falling to 26 from 59.
Open interest for the September contract rose to 293 contracts from 273. "Players sold contracts as they were not quite sure that prices would rise much further, especially when they saw the fall on TOCOM," said one broker, referring to the Tokyo Commodities Exchange.
Tokyo rubber futures dropped nearly 1 percent on Monday under pressure from hedge sales by producers and profit taking after meeting strong resistance.
"Some players took short sale positions as they believed prices would not break the key resistance of 51 baht per kg," said another broker. The price of unsmoked sheet number three (USS3), the raw material for export-grade rubber, was at 47.57 baht per kg, up from 47.35 baht.
On Thailand's Hat Yai physical market, RSS3 was at 49.25 baht per kg, up from 49.11 baht. On Singapore's SICOM, the RSS3 May contract was steady at $1.34 per kg.
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