Rough rice futures at the Chicago Board of Trade closed higher on Thursday on a technical rebound, traders said. The market was overdue for some recovery as it was technically oversold after sliding lower for the past four trading sessions. "We have seen some extreme weakness there was no fund liquidation today," one rice trader said.
That broke the pattern seen most of this week. July rice closed 7 cents per hundredweight higher at $7.09, with the new-crop months up 5 to 5-1/2 cents.
The nine-day relative strength index for the July contract closed at 33, just above the 30 benchmark viewed as an oversold market. On Thursday's RSI was up from 25 at Wednesday's close.
Volume was light estimated at 443 futures and 135 options. That was down from 1,158 contracts for Wednesday. Buying by Cargill Investor Services of new-crop September between $7.28 and $7.33 was supportive.
Farmer hedges sales surfaced in September above $7.30.
US rice export sales data was market neutral. USDA said last week's old-crop sales reached 75,700 tonnes, 51 percent above the previous week but 9 percent under the four-week average.
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