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Chicago Board of Trade rough rice futures closed lower on Monday in light trade pressured by farmer-hedge sales, traders said. The US rice harvest was nearly half way complete. USDA reported late on Monday that 47 percent of crop was off the field, ahead of the five-year average of 44 percent.
However, harvest lagged slightly in the top Rice State of Arkansas as rains have stalled combines. Arkansas farmers have harvested 41 percent of their crop, compared to 42 percent for five-year pace by mid-September. November rice ended 5-1/2 cents lower at $11.12-1/2 per hundredweight. The back months closed 5 cents weaker.
RJ O'Brien and Rosenthal Collins were noted sellers, likely farmer-hedge pressure. That was met by commercial buying out of MF Global and RJ O'Brien, traders said. An estimated 176 futures and 50 options traded, compared to 183 futures and 137 options that traded on Friday, another light futures volume session.

Copyright Reuters, 2007

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