Thai rice futures were traded on Tuesday, a day after not a single contract changed hands, but volume was very thin with just a handful players adjusting positions at barely changed prices, brokers said. Just 22 contracts of five percent white rice were traded, with the most active August contract settling steady at 10.70 baht per kg after 10 contracts changed hands.
"Nothing moved prices. Players just adjusted their positions to avoid risk and stayed on the sidelines waiting for more clear direction," said one broker.
Thai rice futures prices have been trapped in a narrow range and trading has been thin for weeks as huge government stocks kept pressure on prices, brokers said.
The government has bought up to 5 million tonnes of paddy, equivalent to 3 million tonnes of milled rice, from farmers since last November to keep domestic prices up and has given no clue about what it will do with the stockpile.
Brokers said they expected futures prices to change little and volume to stay thin until the end of July, when the government might start releasing its stock to make room for purchases from the smaller second rice crop.
On the physical front, Thai 5 percent white rice was steady at 10.80-10.85 baht per kg.