US rice futures on the Chicago Board of Trade slid the maximum daily trading limit on Tuesday on technical weakness and easing concerns about world rice supplies, traders said. Technical selling surfaced amid easing concerns about world rice supplies after Cambodia on Monday lifted a two-month ban on rice exports.
The CME Group expanded the price limit to 75 cents from 50 cents midway through the session after Friday's limit down move in July and limit up close in September. This was the first session since the three-day US holiday weekend. Usually, price limits expand when two or more contracts settle limit up or limit down and should have been expanded earlier, the CME Group said.
July rice ended 75 cents lower at $19.60 per hundredweight, after gapping lower on the open. September and November also fell the 75-cent limit. There were about 200 orders, a mix of July and September, to sell rice limit down after the markets closed. Estimated volume was light at 480 futures and 29 options.
USDA reported after the markets closed that 94 percent of the US rice crop was planted, near the five-year average 93 percent. Seventy-two percent of the rice was in good to excellent condition, vs 65 percent the week before.
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