Thai rice futures mixed in thin trade

26 Jan, 2005

Thai rice futures ended mixed in thin trade on Tuesday as some players bought contracts on expectations of prices rising further on reduced local supply, brokers said. Trading was thin as 86 contracts of five-percent white rice were traded compared to Monday's 173. The most-active March contract settled steady at 10.52 baht per kg on Tuesday, with the number of contracts traded rising to 42 from 22.
"Opinions among players vary. Some players who believe that the price could rise further bought contracts, as others sold it," said one broker.
The May contracts settled at 10.50 baht per kg on Tuesday, up from 10.48 baht on Monday, with the number of contracts traded falling to 19 from 107.
Open interest for the May contract waiting for delivery was at 1,052 contracts form Tuesday's 1,033.
The July contract ended at 10.44 baht per kg on Tuesday, down from 10.46 baht on Tuesday with the number of contracts traded rising to 20 from 22, brokers said.
The futures price is expected to hold steady or higher over the next few days, in line with the spot market price, backed by reduced local supply, brokers said.
The price of Thai five-percent white rice was at 10.55-10.60 baht per kg on Tuesday, versus last week's 10.50-10.55 baht.
Thailand, the world's largest rice exporter, started rice futures trading on August 26 with five-percent white rice grade.

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