The Chicago Board of Trade rough rice market closed firm on Thursday on a mild bounce from a sell-off that began last on Friday when the government estimated US rice acres bigger than analysts estimated, traders said.
July rice ended 2 centre hundredweight higher at $10.30, after sliding 40 cents or 3.6 percent since last on Thursday, the day before USDA forecast US rice plantings at 2.744 million 100,000 acres more than its March forecast. That surprised many traders who expected a decrease in rice acres.
September and November each closed 8 cents up at $10.60 and $10.91, respectively. Light fund long liquidation by Catkin/Arbour and commercial sales by Man Financial were met by scattered commission house buying, traders said.
Spread trade was quiet. Volume was on the thinner side after the US Independence holiday. An estimated 255 futures and 78 options traded, compared with 872 futures and 149 options that traded on Tuesday. In export news, Iraq bought 100,000 to 150,000 tonnes of Thai rice between $417 to $423 per tonne C&F for July/August shipment, trade sources said on Thursday.
Iraq has at least 100,000 tonnes of outstanding contracts since December 2006 that have not been delivered, including 60,000 tonnes of Thai rice and 30,000 tonnes of US rice, trade sources said. USDA left its weekly world market price for rough rice unchanged at $7.57 per cwt.
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