Chicago Board of Trade rough rice closed higher on Friday after a volatile session, with the strength in other commodities spilling over to rice, traders said. Crude oil was the leader among commodity markets, climbing $11 a barrel to a record top near $139 on rising tensions in the Middle East after remarks by Israel's transport minister that an attack on Iranian nuclear sites looked "unavoidable."
The strength in commodities was reflected in the Reuters-Jefferies CRB Index of 19 commodity futures, which closed 3.6 percent higher after making an all-time high of 441.57 points.
July rice ended 60 cents per hundredweight higher at $19.96 - after rising nearly $1 then slipping when the other CBOT grains dipped from their highs. July/September spreading gave the front month an added boost. September ended 6-1/2 higher at $18.66.
US rice cash prices were firm. But there were easing concerns about the demand CBOT rice registrations after 72 were cancelled earlier in the week, traders said. As of the open there were 2,093 rice contracts registered.
Futures volume was large estimated at 1,746 contracts. Easing concerns about the supply of world rice as more was expected to move into the markets as the Asian rice harvest picks up in the weeks ahead. Thailand, the world's biggest rice exporter, raised it forecast for this year's second rice paddy crop by 13 percent to 7.6 million tonnes. Daily price limits falls to 75 cents from $1.15 since the market did not close limit-up or limit-down.
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