Chicago Board of Trade rough rice futures slid to a four-month low on Thursday and contract lows were made across the board amid more long liquidation, a repeat of this week's moves, traders said. But on Thursday's trade was very active, especially late in the session amid end-of-the-month positioning. "We had a significant amount fund liquidation, significant," one rice broker said.
July rice closed 1 cent lower at $6.40 per hundredweight and September settled 4 cents weaker at $6.58-1/2. The new low in July is $6.30 and in September it is $6.39.
Selling was broad based with RJ O'Brien, ABN Amro, and Cargill Investor services among the sellers. Spread trade was also hefting as firms exited their July positions.
Volume was huge estimated at 2,635 futures and 30 options. There was little fodder tied to the US Department of Agriculture stocks and acreage data released on Thursday.
The government said that the United States rice plantings were 3.309 million acres, down from 3.358 million forecast in the month of March.
Traders were actually expecting rice acres to increase.
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