Thai rice futures ended flat on Monday with players offsetting July contracts to avoid risk amid concerns about the government's huge stockpile, brokers said. Overall volume rose as 59 contracts of 5 percent white rice were traded compared to Friday's 25. The most active July contract settled steady at 10.86 baht, with the number of contracts traded rising to 43 from 14.
"Investors who hold July contracts unwound their positions to avoid delivery and most players still stayed sidelined, keeping their eyes on the government policy on rice," said one brokers.
"The only way to make the market more active is to release the government stock as most Thai rice has been drained into its stock," said another broker.
The government has bought around 5 million tonnes of paddy from farmers since last November to support domestic prices and has given no clues to when it would release the stock.
But most players and brokers expected the government would liquidate its stock in late August as it would need the space for fresh buying once the main harvest is in around November, brokers said.
On the physical front, Thai 5 percent white rice was at 11.10 baht per kg, unchanged from last week.