Thai rice futures ended higher on Wednesday, tracking the physical price on strong demand from exporters who need to buy rice to fulfil shipments, brokers said.
Overall volume dropped as 160 contracts of five percent white rice traded, compared with 179 on Tuesday. The most active January contract ended at 9.78 baht per kg on Wednesday, up from 9.72 baht on Tuesday.
The number of contracts traded fell to 138 from 142. "Investors bought contracts on expectation of prices rising further as exporters need to buy fresh supply for loading," said one broker.
Brokers said not much supply was available in the market ahead of the country's harvest season next month, while farmers were holding their stocks, waiting to sell at higher prices.
Thai five percent white rice in the physical market was 9.6-9.7 baht per kg on Wednesday, up from 9.4-9.5 baht last week.
Thailand, the world's largest rice exporter, started rice futures trading on August 26 with five-percent white rice grade. November, January, March, May, July and September contracts are offered.
Each contract is for 15 tonnes. Trading hours are 10.30 am to noon (0330-0500 GMT) and there will be an additional session between 1.30 pm and 3 pm (0630 and 0800 GMT) on November 8.