US rice futures on the Chicago Board of Trade ended higher on Monday supported by worries about the slow American harvest pace due to heavy rains through the Mississippi Delta region, traders said. Heavy rains add to delays in Mississippi Delta region. Up to 2 inches fell over the weekend with another 0.25 to 1.0 inch forecast for Tuesday and Wednesday -DTN Meteorlogix forecaster.
Also chance of frost in northern Delta by weekend. November rice ended up 2-1/2 cents at $13.13 per hundredweight; January up 2-1/2 at $13.38-1/2. Trade centered at $13.13. Option volatility stays low on expectations for prices to stay range-bound. Spread trade in the November/January was active, 210 spreads traded as firms likely rolling November positions.
USDA reported after the CBOT close that 62 percent of the rice crop was harvested as of Sunday, behind the typical average of 78 percent by early October. United Nations' food agency said world output of paddy rice is set to fall 3 percent to 668 million tonnes this year, hit by bad weather in Asia. Manila says to import 2010 rice needs in due time.
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