Thai rice futures ended higher in a sluggish trade on Wednesday as players were reluctant to take positions ahead of the country's general election at the weekend, brokers said. Overall volume dropped sharply with only 44 contracts of 5 percent white rice traded compared to Tuesday's 183. The most active May contract settled at 10.50 baht per kg, up from 10.48 baht on Tuesday, with the number of contracts traded falling to 16 from 75.

"Players have adopted a wait-and-see stance. They are waiting to see what will happen to the rice intervention scheme and the domestic price after the general election" on Sunday, said one broker.

The government's rice buying scheme, designed to boost domestic prices, has been extended for another month to March 31.

Brokers said the futures prices were expected to be trapped in narrow range of 10.46-10.56 baht per kg over the next few days, tracking the physical market.

On the physical front, Thai 5 percent white rice was quoted unchanged at 10.50-10.55 baht on Wednesday.

Copyright Reuters, 2005