Thai rice futures fell on Wednesday to their lowest since trade started in late August on worries overseas demand will fall after a Thai exporter sold 900,000 tonnes to a Geneva-based trader last week, brokers said.
Technical factors were also at work as prices fell below the psychological support level of 9.3 baht, they said as volume dropped slightly to 134 contracts of five percent white rice from 149 on Tuesday.
The most active January contract closed at 9.28 baht per kg, down from 9.38 baht on Tuesday, with the number of contracts traded falling to 67 from 88.
Thai rice futures were initially offered at 9.5 baht per kg on August 26, when trade was launched, and has varied between 9.38 and 9.64 baht.
Last week, President Agri Trading signed an agreement to sell 900,000 tonnes to Geneva-based Ascot Commodities with most of the rice to be shipped to African countries.
"The market expected fresh demand in Africa would be cut due to the news.
Players are concerned that there will be no more demand to absorb supplies during the harvesting season," said one broker.
"The exporter has ample rice in hand to ship, so we expect no more demand," said another broker.
But brokers did not expect prices to break strong support at 9.00 baht per kg, the price in the physical market, as the government has said it will buy rice from the upcoming harvest at higher than the current market price.
Thailand, the world's largest rice exporter, started rice futures trade 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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