Thai rice futures ended lower on Wednesday as investors, expecting prices to drop further, offset July contracts and took short-sale positions on deferred contracts, brokers said. Overall volume rose as 137 contracts of 5 percent white rice were traded compared to Tuesday's 94.
The most active July contract settled at 10.80 baht per kg, down from 10.84 baht, with the number of contracts traded rising to 40 from 21.
Investors expected prices to slide because they believed the government would release its huge stock in the next few months to prepare space for grain from the main harvest due in November, brokers said.
The government has bought up to around 5 million tonnes of paddy from farmers since last November to support domestic prices and has given no clues to when it would release the stock.
On the physical front, Thai 5 percent white rice was steady at 10.90-10.95 baht per kg.
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