US rough rice futures on the Chicago Board of Trade on Friday slipped below $11 for the first time in over week, pressured by the bearish trend in equities and other grains due to the gloomy economic outlook. Those concerns underscored by the Dow industrials falling to a 6-1/2 year low, ending 100 points lower at 7,365. March rice ended 30-1/2 cents down at $11.98-1/2 per hundredweight.
Given the large open interest (330 puts) at the $12 strike in March options, market was attracted to that level before expiration on the close. Back months settled 12-1/2 to 31-1/2 cents lower. Rice fell despite good export weekly sales data.
USDA said net rice export sales last week 78,600 tonnes (old-crop), 58 percent above the previous week and double the prior four-week average. Vietnam halted registration for new rice export deals through June saying targeted volume to be loaded has been meant-food association.
Comments
Comments are closed.