Thai rice futures firm, volume falls

Thai rice futures rose for the second consecutive session on Friday as investors continued to cover their short positions, brokers said. Overall volume dropped as 73 contracts of 5 percent white rice were traded compared to Thursday's 87.
The most active January contract settled at 11.02 baht per kg, up from 11.00 baht, with the number of contracts traded rising to 41 from 3.
"Investors covered their short positions for the second day and that nudged prices higher," one broker said.
Prices would not rise much higher despite government buying from farmers because export demand was thin, brokers said.
The government buys rice at a higher-than-market prices to support domestic prices. It said it will buy 5 percent paddy grade at 7,100 baht ($173.3) per tonne between November 1 and the end of February.
On the physical front, Thai 5 percent white rice was steady at 10.60-10.65 baht per kg.