Chicago Board of Trade rough rice futures ended lower on Tuesday amid technical weakness and slow demand for US rice, traders said. March rice settled 5 cents down at $10.15 per hundredweight. The deferred months closed 2 to 4 cents weaker.
Rice is trading below most key moving averages, ending below its 100-day moving average of $10.21-1/2 - after hitting resistance at $10.19. "The exhaustion sell-off keeps buyers sidelined," said one rice broker.
Rice hit a two-year top in mid-January and has been on a downward spiral ever since due to a disappointing export pace and the government's bigger 2006 US final crop number issued on January 12.
However, there were signs of export business improving with Costa Rica buying 68,088 tonnes of US rough rice for March delivery, according to Costa Rica's National Rice Corp. "Trade was slow with the pit preparing for the roll tomorrow and the rest of the week," the broker added. Firms were expected to start rolling their March long positions on Wednesday, the end of the month. An estimated 980 futures and 57 options traded, compared with 865 futures and 39 options on Monday.
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