Rough rice futures at the Chicago Board of Trade closed higher on Friday, lifted by late local short-covering and supported by slow farmer selling.
Traders said investors continued to roll out of their November positions into the January contract before first notice day for delivery against the November on October 29. CBOT rice futures settled 11 to 12-1/2 cents per hundredweight higher, with November up 12-1/2 cents at $6.95 and January up 11 cents at $7.11.
Traders said November met resistance at the $7.00 level. The contract hit a session high of $6.95. "There was short-covering late in the session by locals," a trader said, adding that slow farmer selling was helping to support prices despite a large crop this year.
Another trader said commercial buying supported the market, adding that hedge pressure surfaced near the day's highs. Reface was a featured spreader, buying November and selling January, while locals were spreading in reverse of that.
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