US rice futures on the Chicago Board of Trade tumbled on Thursday as the government's burdensome global stocks forecast for the coming season overhangs the market, traders said. Also bearish was an improved planting outlook in the top rice state of Arkansas. Rains are expected to cease by the weekend, giving farmers a much-needed window to plant crops.
Mediocre export sales not breaking 50,000 tonnes last week, 46,900 tonnes (all old-crop) added to the bearish sentiment. July rice closed 14-1/2 cents lower at $12.01 per hundredweight. May expired midday at $11.90, down 11-1/2 cents. New-crop month September settled 22 down at $12.07-1/2.
Option moves were bearish as commercials sold November $13 calls -trade Overnight, there were 26 May deliveries, which were met by a strong stopper. A MF Global customer took 23. Traders awaiting results Iraq rice tender that closed Tuesday. India may allow a further 1 million tonnes of non-basmati rice export to Africa, taking overseas sales to 2.5 million tonnes-Economic Times.
Comments
Comments are closed.