Thai rice futures fell for the third consecutive session on Tuesday due to profit taking, brokers said. Overall volume dropped as 51 contracts of 5 percent white rice changed hands compared to Monday's 84.
The most active January contract settled at 11.22 baht per kg, down from 11.34 baht, with the number of contracts traded falling to 18 from 48.
"Investors sold contracts to cash in profit before prices dropped further," said one broker. Prices were expected to slide this week in the absence of overseas demand, brokers said.
However, prices would not fall below the strong support of around 11.10 baht per kg as they were supported by state buying, they said.
The government started buying rice from farmers at a higher-than-market price on Tuesday and will continue to do so until the end of February at 7,100 baht ($174.2) per tonne for 5 percent paddy grade. On the physical front, Thai 5 percent white rice was steady at 10.80-10.90 baht per kg.
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