Most Thai rice futures ended lower in a directionless market on Monday as many players sold due to rumours of changes in the government intervention scheme, brokers said. Overall volume dropped as 119 contracts of 5 percent white rice's were traded compared to Friday's 258. The most active May contract settled at 10.32 baht per kg, down from 10.34 baht on Friday, with the number of contracts traded falling to 47 from 87.
The March contract ended steady at 10.36 baht with the number of contracts traded falling to 47 from Friday's 74. "There were two beliefs. One side sold short, expecting prices to fall further after rumours spread about corruption in the government intervention scheme," said one broker.
They sold because they feared prices would drop if the government-buying scheme were halted due to corruption, brokers and dealers said.
There was no comment from the government. "The other side bought contracts, expecting prices to rise as they believed the government still needed to boost rice prices in order to attract votes ahead of the country's general election" scheduled for February 6, a broker said.
On the physical front, Thai 5 percent white rice was quoted at 10.20 baht per kg, up slightly from last week's 10.10-10.15 baht.
Thailand, the world's largest rice exporter, started rice futures trading on August 26 with the 5 percent white rice grade.
January, March, May, July and September were offered. Each contract is for 15 tonnes.
Trading hours is 10:30 am to 15.00 noon (0330 to 0800 GMT).
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