Thai rice futures dropped further on Tuesday as stop-loss selling emerged on concern an upcoming harvest would boost supplies, brokers said.
Overall volume rose as 149 contracts of five percent white rice were traded, double the 70 contracts traded on Monday. The most active January contract ended on Tuesday at 9.38 baht per kg with 88 contracts traded, down from 9.48 on Monday when 41 contracts were traded.
"The futures prices might likely drop further in the next few days on concerns about supplies," said one broker.
"However, we do not expect it to break the support level of 9.30 baht." The harvest of the country's main 2004/05-rice crop starts in November. Thailand, the world's largest rice exporter, started its first rice futures trade on August 26 with five- percent white rice grade.
Each contract is for 15 tonnes.
November, January, March, May, July and September contracts are offered. Trading hours are 10.30 am to 12 noon (0330-0500 GMT), the same as trading in rubber contracts, the first offered by the futures market when it opened on May 28.
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