Most Thai rice futures ended flat in thin trade on Tuesday as investors stayed on the sidelines ahead of the results of a government rice tender, traders said.
Only 19 contracts of 5 percent white rice were traded, down from Monday's 27, with the most active December contract settling steady at 11.38 baht per kg after 10 contracts were traded, up from 6.
"Most players stayed on the sidelines feeling uncertain and expecting prices to go higher if exporters submitted bids higher than market prices," said one broker.
The government opened the tender to sell 937,442 tonnes of 5 percent, 10 percent and 25 percent broken rice grades on Tuesday, The official result was due on Wednesday. However, Thailand's largest rice exporting firm, President Agree Trading Co Ltd, offered the highest of 12 bids, senior Commerce Ministry official Karoon Kittisathaporn told reporters. The company offered $291 per tonne for 5 percent white rice, higher than the current price of around $286 per tonne, he said.
It also offered $289 per tonne for 10 percent white rice, for which the market price is now $284 per tonne and $260 for 25 percent broken rice selling for $255 per tonne.
Prices were expected to rise as government buying from farmers underpinned them and the prices offered at the tender, brokers said.