Thai rice futures up in thin trade

Thai rice futures inched up in thin trade on Tuesday as a few players offset contracts to avoid risk and sentiment remained weak, brokers said. Only six September contracts changed hands, up from just one on Monday, but the price crept up to 10.80 baht per kg from 10.70 baht.
"They just offset contracts to avoid risk, but the overall rice futures trade is likely to remain sluggish until the government buying scheme expires," said one broker.
The government has bought up to 5 million tonnes of paddy, equivalent to 3 million tonnes of milled rice, from farmers since November to support domestic prices in a programme due to end on August 15.
Investors have turned to rubber futures as the government rice buying has trapped rice futures prices in a very narrow range with little room for profit.
By contrast, rubber futures have been volatile due to tight supply and changing oil prices.
The key September rubber contract ended at 72.7 baht per kg on Tuesday, down slightly from a record 73.8 baht due to profit taking, but brokers said they expected sentiment would remain firm on rubber.
On the physical front, Thai 5 percent white rice was steady at 10.95-11.00 baht per kg.