Thai rice futures flat again

17 Nov, 2005

Thai rice futures ended steady on Wednesday as players offset contracts in thin trade, brokers said. Overall volume fell with only 12 contracts of 5 percent white rice were compared to Thursday's 23.
Six December contracts and 6 March contracts were traded and the prices of both steady from Tuesday at 10.96 baht per kg and 10.98 baht respectively.
"Players did not want to hold contracts longer as they did not want to take any risk. They are just waiting to see a more clear direction," one broker said.
Trading remained thin, tracking the physical market because most supplies were expected to be drained into government stocks and export demand was thin, brokers said.
The government started buying rice from farmers at higher-than-market prices on November 1 to support domestic prices when the main crop started coming onto the market.
On the physical front, Thai 5 percent white rice was steady at 10.80 baht per kg.

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