US rough rice futures on the Chicago Board of Trade rose the daily limit on Tuesday, spurred by a weaker dollar and hopes that commodities and financials may stabilise with the election of a new US president, traders said. Prospects for fresh export business added support.
November rice, trading without limits, ended up 55-1/2 cents at $15.70 per hundredweight. All the back months ended up the 50-cent limit, with January at $15.92-1/2.
Price limits expand to 75 cents, from 50 cents for next session after the limit-up move. Volume light estimated at 485 futures and 50 options. There was talk within the rice industry that Colombia would tender for 75,000 tonnes of rough rice at zero import duty, likely US origin.
After the close USDA confirmed that Colombia would tender for 75,000 tonnes of rice this week and another 75,000 tonnes in January. Additionally, Costa Rica is expected to tender for 60,000 tonnes of rice this week. Overnight, there were 40 deliveries against the November contract, which were met by a strong stopper. An MF Global customer took 32. India will not lift its ban on exports of non-basmati rice -trade secretary.
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