Chicago Board of Trade rough rice futures closed higher on Friday on a technical bounce, after sliding to three-month lows this week, traders said. July settled 6 cents higher at $6.81 per hundredweight, while September was up 6-1/2 cents at $7.05-1/2. The market was overdue for a technical bounce, after sliding lower for the week.
The nine-day relative strength index for the July contract closed at 27 still below the 30 level viewed as a technically oversold market but above the 20 mark at Thursday's close.
Commodity funds and commercial buying supported prices, which was met by commercial hedge pressure. The US Delta remains hot and dry, including the top Rice State of Arkansas. Even though rice is an irrigated crop there were hot spots in the field were the water was evaporating.
That was expected to trim field and milling yields this year, traders said. Volume was moderate estimated at 842 futures. Only one option contract traded.
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