US rough rice futures on the Chicago Board of Trade ended mixed on Friday after a volatile session, with the front months firm due to tight nearby supplies, traders said. New-crop months tumbled on profit-taking after USDA forecast world rice stocks to expand 5 percent in the coming year to 82.6 million tonnes, reflecting a record crop in 2008.
However, US 2008/09 rice end stocks were forecast at 17.1 million cwt, down from 21.6 million for 2006/07. Rice remains underpinned by prospects for reduced output from cyclone-devastated Myanmar. USDA forecast the cyclone cut Myanmar's rice crop by 7 percent. Given the cyclone damage in Myanmar, the country is likely to become a net importer of rice, traders said.
The old-crop months ended higher, with July up 62-1/2 cents at $22.97-1/2 per cwt. New-crop contracts settled 35 to 42 cents lower. The market rose the $1.15 limit during the Asian trading session then fell the $1.15 limit during the day session on USDA's forecast for both world production and stocks to expand.
Commercial buying at the day's lows helped the market recover, traders said. Commercials were also selling puts, a supportive feature. Volume was large estimated at 3,285 futures and 41 options. Trading limits revert to 75 cents per cwt for $1.15 for Monday as the market did not settle limit-up or limit-down.
Mexico said late on Thursday it would allow 250,000 tonnes of rice to enter the country without paying tariffs to protect Mexicans from soaring food costs. Overnight May deliveries were light at 11 contracts. Customers of Man and Iowa Grain stopped them.
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