Thai rice futures rose to fresh highs on Wednesday as investors feared drought and a government buying scheme would cut supplies, brokers said. Overall volume rose as 152 contracts of 5 percent white rice were traded compared to Tuesday's 105. The most active May contract surged to a new high of 10.80 baht per kg, up from 10.74 baht, with the number of contracts traded rising to 104 from 31.
"Most players bought contracts to make sure that they would have ample rice for their businesses despite less supply due to drought," said one broker.
"Moreover, they feared the government would extend the state buying scheme despite the drop in supply in order to support farmers," he added.
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