Rough rice futures at the Chicago Board of Trade fell on Thursday, pressed by this year's disappointing export pace, traders said. January rice ended 12 cents down at $9.87 per hundredweight, just above the $9.86 day low. Thinly traded November, which stops trading on November 20, closed steady at $9.90.
The other months settled 4 to 12 cents lower. The market closed technically weak at the day's lows. The lead contract, January, penetrated its 20-day average of $9.90-1/2 and its 50-day at $9.87.
Light sell stops were triggered below $9.90 in January, traders said. "The export number was nothing special especially after last week's great sales. We still need to catch up from the previous months," said one rice broker. The US Agriculture Department reported that 43,200 tonnes of US rice were sold for export last week, down from the marketing-year high of 198,900 tonnes sold the week before.
Rice export sales are 26 percent off from a year ago. High US prices and concerns about the discovery of an unapproved biotech rice variety in the US supply have limited export business this season.
Speculative selling by Man Financial, Rosenthal Collins and RJ O'Brien was met by light commercial pricing. About half the day's volume was made in spreads, traders said. Estimated volume was 453 futures and 257 options, up from the 304 futures that traded on Wednesday. In world news, rice trades in Vietnam, the world's second largest rice exporter remains halted after this week's decision by the government to stop exports due to supply worries.
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