Most Thai rice futures ended higher on Monday as speculators bought contracts on hopes that prices will keep rising as supply tightens, brokers said. Trading was brisk with 173 contracts of 5 percent white rice traded compared to 62 contracts on Friday. The most active May contract settled steady at 10.48 baht per kg on Monday, with the number of contracts traded rising to 107 from 37 last Friday.
Open interest for the May contract was at 1,033 contracts from 1,057 contracts last Friday.
The July contract finished at 10.46 baht per kg on Monday, up from 10.44 baht. The number of contracts traded fell to 12 from 14.
Open interest for the July contract edged up to 137 contracts from 133 last Friday.
"Speculators bought contracts because they expect the price to rise further. They can take profits later," said one broker.
Brokers are expecting less supply as the government buys rice from farmers under a state intervention scheme designed to prop up prices for producers. The scheme is due to end in February.
The price of 5 percent white rice on Thailand's physical market was steady at 10.50-10.55 baht on Monday.
Thailand, the world's largest rice exporter, started rice futures trading on August 26 with 5 percent white rice grade.
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