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Speculative buying pushed Thai rice futures higher on Monday, but prices could ease over the next few days in an overbought market, brokers said. Overall volume rose as 275 contracts of 5 percent white rice were traded compared to last Tuesday's 94. The Agricultural Futures Exchange of Thailand was closed from Wednesday through Friday for the Songkran holiday which marks the Thai new year. The June contract was up 0.10 baht at 11.08 baht per kg on Monday, with the number of contracts traded rising to 117 from 42.
Brokers said they were keeping a close eye on the government, especially on its policy on stocks estimated at around 5 million tonnes, because releasing them would depress the domestic price.
On the physical front, Thai 5 percent white rice was steady at 11.20 baht per kg.

Copyright Reuters, 2005

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