US rice futures on the Chicago Board of Trade rose to a fresh 9-1/2-month top on Tuesday and several back months made contract highs as concerns about a short Indian crop propelled speculative buying, traders said. November rice ended up 8-1/2 cents per cwt at $14.87-1/2. More active January closed 6-1/2 higher at $15.11-1/2 after hitting a contract high of $15.23.
March, May and July also made contracts highs. Volume was large, estimated at 1,528 futures and 90 options. Unknowns about future demand spiked interest in options and boosted volatility. India's summer-sown rice output for 2009/10 is projected down 18 percent from 2008/09 after the worst monsoon in 37 years, according to the government's first crop estimate of the season.
USDA late on Monday said 89 percent of US rice crop harvested, below five-year average of 98 percent. Top producer Arkansas had 84 percent of its crop off the field, behind its usual pace of 99 percent. Overnight, an MF Global customer issued 31 November deliveries which were stopped by commercial ADM, basically a repeat of Monday's delivery market.
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