Rough rice futures at the Chicago Board of Trade tumbled on Wednesday as commodity funds liquidated long positions, traders said. July rice closed 8 cents lower at $10.11 per hundredweight, September was down 8-1/2 at $10.47-1/2 and November settled 6 lower at $10.80.
Catkin Arbour sold 400 July contracts as commodity funds liquidated positions. Sell-stops were triggered below $10.10 in July, driving the contract to a low of $10.01, traders said.
Commercial buying out of Man Financial helped the market recover, bringing it off lows. Man bought 700-900 contracts in the first three months. There was some spreading of July-November at 68 cents as RJ O'Brien rolled short hedges for commercials, traders said.
Fundamental inputs remain the same. Ample nearby supplies due to a lagging export pace weigh on old-crop July, while the new-crop months are supported by prospects for a smaller rice supply in the upcoming year because of fewer plantings. USDA left its world market price of long-grain rough rice unchanged at $7.57 per cwt.
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