Rough rice futures at the Chicago Board of Trade closed firm Monday on follow-through technical buying from Friday, traders said. But volume was light, with commercial interest quiet, as industry players were attending a rice conference in Asheville, North Carolina and traders said.
July rice closed 9 cents higher at $8.94 per hundredweight. The back months ended 2-1/2 to 8 cents higher. Commercial pricing added support, which eventually attracted speculative buying. The market ran into buy stops, which pushed the July contract to a high of $8.97.
After the close, the US Agriculture Department reported that 56 percent of the US rice crop was in good to excellent condition. That was down from 58 percent the week before.
The Delta, where the bulk of the US rice crop is grown, needs rain. The latest US Drought Monitor showed of Arkansas, the No 1 rice state, abnormally dry, while Louisiana was experiencing moderate to extreme drought conditions.
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