CBOT rice lower in thin trade

27 Jul, 2006

Rough rice futures on the Chicago Board of Trade closed weak on Tuesday after a series of technical moves amid lackluster trade, floor traders said. September rice closed 3-1/2 cents lower at $9.38 per hundredweight. New-crop November ended 2-1/2 cents weaker at $9.65.
CBOT rice closed near the day's low as a speculative offer by ADM Investor Services overhung late trade. But the market opened firm on speculative buying by Shatkin Trading, traders said.
Volume was estimated at 172 futures and 11 options, down from the 534 futures that traded on Monday. CBOT futures prices have been range-bound most of July as traders look for a stimulus to break the trend, they said. High US rice prices have deterred business and nearby supplies are adequate to meet domestic demand.
After the markets closed, the US Agriculture Department raised the weekly world market price for long grain rough rice by 8 cents to $6.85 per cwt. Late Monday, the government rated 55 percent of the US rice crop as good to excellent, unchanged from the previous week.

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