Rough rice futures at the Chicago Board of Trade closed higher on Monday on light short-covering by commercials and locals, traders said.
November rice settled up 2 cents at $7.12 per hundredweight, with January up 2-1/2 cents at $7.39-1/2. Volume was estimated by the exchange at 1,126 futures and 18 options.
The November/January spread traded at a carry of 27-1/2 to 28 cents. January rice stayed between $7.36 and $7.40 for most of the until commercial buying emerged at $7.40, spurring buying by RJ O'Brien, Reface Inc and ADM Investor Services, a floor source said.
That lifted the contract to $7.45 before profit taking by locals and others pushed prices back off their highs. Traders said first-day deliveries were heavy due to weak cash markets, but within trade expectations.
Rice deliveries on first notice day for the November contract totalled 707 lots, within the range of estimates for 700 to 1,000 lots. A customer of Toenec Inc issued 609 lots, and the biggest stopper was the ADM Investor Services house account at 292 lots.
On Friday's Commitments of Traders report showed funds reduced their net long position in CBOT rough rice for the week ended October 25. Funds were net long 1,611 contracts in combined futures and options, down from 1,777 the previous week.
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