Rough rice futures on the Chicago Board of Trade closed firmer on Thursday, hitting a one-month top on speculative buying amid light volume, traders said. September rice closed 1-1/2 cent higher at $10.40-1/2 per hundredweight, after reaching a high of $10.56.
New-crop November rice settled 2 cents up at $10.74 after climbing to $10.89. Buy stops were hit in November near $10.80. The bulk of the stop orders were triggered above $10.80, traders said. Rice hit its top when Chicago wheat rose the 30-cent trading limit. Volume remained light.
Speculative buying attracted commercial selling from Man Financial, traders said. Weekly export sales data was disappointing while shipments were strong. The US Agriculture Department reported United States rice export sales at 16,300 tonnes.
Old-crop sales of 13,300 tonnes were 66 percent below the four-week average. "The 13,300 tonnes sold is indicative why we've been so slow," one rice trader said, referring to CBOT futures volume.
Rice shipments of 45,400 tonnes for the week put total exports for the 2006/07 marketing season near USA's export forecast of 3.0 million tonnes (milled basis), traders said. The marketing year ends on July 31. Farmers were getting ready to harvest this year's crop, which is expected to be smaller than a year ago due to fewer plantings. There also were concerns that yields could be off, especially in Texas, where rains have stalled combines, traders said.