Rough rice futures at the Chicago Board of Trade ended weaker on Friday, following wheat lower, traders said. Monthly USDA crop data released before the open came in near trade expectations, failing to give the market much direction after its recent rally to a 10-year high.
"The rice market is continuing to act to some extent like the other ag markets ... we're going to coattail wheat," said Neauman Coleman, an analyst and rice broker with Brinkley, Arkansas.
November rice ended 8 cents up at $11.64 per hundredweight. January and March closed 9 cents higher at $11.97 and $12.25, respectively. CBOT December wheat closed 25-1/2 cents weaker at $8.57-1/2 as USDA's supportive monthly crop data was already priced in the market and traders took profits. USDA raised its estimate of the 2007 US rice crop forecast by 5.3 million cwt to 197.1 million to reflect bigger yields.
However, the government turned around and increased export demand. The net effect was a 800,000-tonne drop in its ending stocks estimate to 26.2 million. Tight global rice stocks remain a supportive feature. USDA cut its 2007/08 world supply forecast to 70.94 million tonnes, from 70.99 million a month ago.