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  • News Desk
  • Feb 1st, 2005
  • Comments Off on Thai rice futures higher, trading subdued
Thai rice futures ended higher on Monday, following the physical price, as a state buying scheme keeps supply tight and prices firm, brokers said. Trading was subdued as 56 contracts of 5 percent white rice were traded compared to last on Friday's 72. The most active May contract settled at 10.48 baht per kg on Monday, unchanged from last on Friday, with the number of contracts traded rising to 23 from only two.

Another active April contract closed at 10.50 baht per kg on Monday, up from 10.48 baht last on Friday with the number of contracts traded falling to 11 from 33.

"Most millers and farmers have kept rice in their stock, waiting to sell later at higher prices as they expect the price to rise further after the government has extended the intervention scheme," said one broker.

The government said last week it had extended the scheme for one month to March 31 to boost domestic prices. It said it had already bought 2.8 million tonnes of paddy rice since the scheme started last November and aimed to buy up to nine million tonnes.

On the physical market, Thai 5 percent white rice was between 10.50-10.55 baht per kg on Monday, slightly up from last on Friday's 10.50 baht. Thailand, the world's largest rice exporter, started rice futures trading on August 26.

Copyright Reuters, 2005


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