Thai rice futures ended mixed in a direction's market on Thursday as most players stayed on the sidelines waiting to hear what the government will do with its remaining stock, brokers said. Overall volume was thin as only 10 of the larger 15-tonne contracts were traded, down from Wednesday's 39. Not a single small 5-tonne contract was traded on Thursday.
The November contract settled at 10.86 baht per kg, up from 10.80 baht, with 6 contracts traded. No November contract was traded on Wednesday. "That only ten contracts were traded does not imply anything, but the subdued trade showed that players stayed away from the market, waiting to see what the government will do with its remaining stock," said one broker.
By contrast, the December contract fell to 10.86 baht per kg from 11.00, with 4 contracts traded. The government has sold around 180,000 tonnes of the 500,000 tonnes of milled rice it aimed to sell by tender last week to the Chaiyaporn exporting firm.
The government has bought up to 5 million tonnes of paddy, the equivalent of 3 million tonnes of milled rice, from farmers since last November to support domestic prices.
But brokers and traders there were rumours that the government would sell more of its stock before the end of the month. On the physical front, Thai 5 percent white rice was at 10.90 baht per kg, down from 11.00-11.10 last week.