Thai rice futures end mostly flat

Thai rice futures ended mostly steady on Monday, but tight supply is likely to push prices higher over the next few days, brokers said. Overall volume rose as 108 contracts of 5 percent white rice changed hands compared to Friday's 20 with the most active December contract settling at 11.40 baht per kg after the number of cortexes traded rose to 34 from 4.
"Players were buying speculatively, expecting prices to rise, supported by the government buying scheme which is due to start in November," said one brokers.
The government buys rice from farmers to keep domestic prices up and will start again when the main crop starts coming to market in November.
It will pay 7,000 baht ($171.1) per kg for the 5 percent paddy grade, up from 6,500 baht in the last crop.
On the physical front, Thai 5 percent white rice was at 11.10 baht, unchanged from last week.