The Agricultural Futures Exchange of Thailand (AFET) plans to add paddy rice futures contracts for trading next year.
The exchange is also studying with the Office of Agricultural Futures Trading Commission the possibility of trading block rubber, sugar and ethanol, says AFET president Nitus Patrayothin.
AFET currently offers futures contracts for rubber ribbed smoked sheet No 3 (RSS3), tapioca starch and chips, Hom Mali rice and 5% white rice.
Dr Nitus said trading volumes on the exchange had risen sharply to an average of 886 contracts per day over the first 11 months, compared with 601 contracts in the same period last year.
Heavy bids for government rice during the second half this year have improved performance, he said. The most active trading day this year was Oct 29 when volume reached 11,943 contracts.
Dr Nitus said that AFET had proven to be an effective hedging tool for investors and players in the rice trade against future price fluctuations. About 700,000 tonnes of Hom Mali rice and 5% white rice have been offered for sale by the Commerce Ministry through the AFET.
To stimulate the market next year, he said AFET would develop a new business model to encourage more state agencies to take part in the futures market. Discussions with private associations are also under way on a plan to distribute accurate trading information on farm prices and production for investors.
Source: Bangkok Post
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