US rice futures on the Chicago Board of Trade dived the 50 cent trading limit on Thursday on follow-through technical selling, spurred by USDAs big stocks estimate issued the day before, traders said. March rice ended 36 cents lower at $11.88 per hundredweight.
May closed 37 down at $12.07. Sell-stops were triggered at $12 in May, sending the contract 50 cents lower to $11.94. Volume was moderate-light estimated at 759 futures and 20 options.CBOT rice has tumbled nearly $1 since USDA raised its 2008-09 US rice ending stocks estimate by 4 million cwt to 30.2 million on Wednesday. No news regarding the Iraq rice tender weighed on the markets.
Rice sold off despite strong weekly exports sales data and other CBOT grains ending higher as the Dow closed up for third straight day. USDA reported that 103,900 tonnes of 2008-09 rice sold for export last week - 88 percent above the previous week. Mexico was the biggest buyer of 13,700 tonnes. Overnight, there were light March deliveries 5 lots.
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