US rice futures on the Chicago Board of Trade rose on Tuesday as a weaker dollar enticed traders to buy CBOT grains, including rice. When the dollar weakens, it makes the price of US commodities more attractive to overseas buyers and encourages managed funds to buy grains and other dollar-denominated commodities.
Dollar weakened on speculation the Federal Reserve may keep debt costs low by reducing expectations for higher interest rates at the conclusion of its meeting on Wednesday. CBOT July rice closed 18-1/2 cents higher at $12.33-1/2 per cwt. September ended 25 up $12.42. USDA late Monday rated 54 percent of the US rice crop good to excellent on Sunday, down 1 percentage point from the week before and year-ago rating of 70 percent good to excellent.
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