US rice futures on the Chicago Board of Trade climbed on Monday in tandem with the other grains, supported by a collapsing dollar and a slow American harvest, traders said. CBOT November rice ended up 21-1/2 cents at $13.87 per cwt; January was up 21-1/2 at $14.11-1/2.
Spreading featured as 448 front-month spreads traded as firms rolled November positions into January. Option trade feature selling of September $14.10 puts. Volume large estimated at 1,179 futures and 15 options. The falling dollar spurred buying in grains, a continuing trend.
A cheap dollar makes US exports like rice cheaper to overseas buyers and attracts investment buying in commodities as a hedge against inflation. USDA reported after the markets closed the US rice harvest was 76 percent complete by Sunday, compared to the typical pace of 93 percent by mid-October. In top rice state of Arkansas harvest just 66 percent of the crop off the field, versus 94 percent for five-year pace.
South Korea buys 21,384 tonnes milled rice; passes 36,180 tonnes. Iran has imported 243 tonnes of rice from the United States in the past six months, first time Iran bought grain directly from US in 30 years. The Philippines pushed back a tender for 250,000 tonnes rice to November 4 from a scheduled date of October 30. Manila may hold more rice tenders this year. Thailand threatens to delay ASEAN pact over rice.
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