Traders said that because of low rubber prices in the world market, they were bidding only around 15-16 baht per kg for unsmoked sheet grade three, compared with the government intervention price of 20.50 baht per kg. The Thai government resumed buying on Thursday after state-run Krung Thai Bank approved four billion baht in fresh funds to prop up domestic prices.

A lack of funds stalled the government's rubber market intervention programme late last week and caused the Agriculture Ministry to close more than half of its 200 rubber-buying points. Heavy rains in some parts of the south of Thailand have also hamperedrubber tapping. The Thai benchmark RSS3 was bid at 54.00-55.00 U.S cents per kg for October/November shipment, stable from last week.

"We will pay 55.00 cents -- while we are willing to sell at 56.00 cents," said a trader in the south Thai rubber town, Hat Yai.

Traders said Japanese buyers were staying in the Thai market for long-term shipments but the demand was not big enough to stimulate overall sentiment.