Thai rice futures climbed on Wednesday, boosted by speculative buying, in line with physical prices rising due to strong overseas demand and tight domestic supply, brokers said. Overall volume dropped as 140 contracts of 5 percent white rice were traded compared to Tuesday's 315. The most active may contract rose to 10.52 baht per kg on Wednesday from 10.50 baht with the number of contracts traded falling to 50 from 113.
"Players came back into the market today to buy on dips on expectations of prices rising further in line with the physical price," said one broker. On the physical front, Thai 5 percent white rice was steady at 10.55 baht per kg on Wednesday.
It was 10.40 baht last week. Thailand, the world's largest rice exporter, started rice futures trading on August 26 with the 5 percent white rice grade.
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