Thai rubber futures ended lower on Monday on a technical correction after a higher close on Friday, brokers said. Overall volume rose as 141 contracts of benchmark ribbed smoked sheet number three (RSS3) were traded compared to Friday's 56. The June contract fell 0.4 baht to 49.8 baht per kg, with the number of contracts traded rising to 24 from 4. "Moves today were mainly technical. Fundamentally, the price is expected to remain on the upward trend on concerns about supply," said one broker.

Prices should rebound over the next few days with key resistance at 51.2 baht per kg and support at 49.4-49.5 baht, brokers said.

"Southern Thailand is still in the wintering season, so less supply is expected and that would continue supporting the price," said one.

In Thailand's wintering season, which lasts until May, rubber trees produce less latex and less is available in the market.

The price of unsmoked sheet number three (USS3), the raw material for export-grade rubber sheet, was down 0.14 baht per kg at 44.04 baht on Monday.

On Thailand's Hat Yai physical market, benchmark smoked rubber sheet RSS3 was down 0.12 baht per kg at 45.33 baht.

On Singapore's SICOM, the RSS3 March contract was $1.24 per kg, down from Friday's $1.25. Thailand, the world's top producer and exporter of natural rubber, launched its first commodity futures exchange in May, allowing brokers to trade in RSS3.

Copyright Reuters, 2005