Thai rice futures ended mixed in lights trade on Friday as distant contracts rose on speculative buying, brokers said.
Overall trading volume dropped, as 94 contracts of five percent white rice were traded compared with 316 on Thursday. No November, July and September contracts were traded.
The January contract ended flat, at 9.84 baht per kg.
The number of contracts traded sharply dropped to 29 from 206, brokers said. Open interest for the January contract stood at 586 contracts at the end of Friday trade, down from 592 on Thursday.
The March contract ended at 9.78 baht per kg, up slightly from 9.72 baht on Thursday, with the number of contracts traded rising to 42 from 39. "The March contract ended higher today on speculative buying," said one broker.
"Technically, it could rise further in the next week." Brokers expect the futures price to hold steady or to rise in the next week, supported by a state scheme to buy rice at higher than market prices.
Brokers see the next technical resistance for the March contract at 9.80 baht per kg and support at 9.70 baht. "Fundamentally, we do not see any negative factors to put pressure on the price in the next week," said one broker at the Thai Agricultural Association brokerage.
Bangkok has said it will buy 9 million tonnes of paddy from the 2004/05 main rice crop from November 1, when the harvest starts.
The scheme will run through February. Brokers said they also would closely monitor a planned meeting on November 8 between Commerce Minister Wattage Muangsook and rice exporters.
"The minister might ask exporters to help support the price by not selling to overseas buyers at cut-throat prices," said one broker. "That could send a good signal to the market." Also on November 8, the exchange will extend its trading session into the afternoon, between 13:30 p.m. and 15:00 p.m. (0630 and 0800 GMT).
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