US rough rice futures on the Chicago Board of Trade dived on Wednesday amid a broad-based sell-off in commodities, traders said. Rice, along with other commodities, has been on fire, soaring to an all-time high as investors looked for a hedge against inflation.
But on Wednesday the flow of speculative capital into commodities slowed and markets tumbled with losses wracked up in everything from soybeans to crude oil to gold. March rice ended 24-1/2 cents lower at $14.15-1/2 per hundredweight, May ended 22 weaker at $14.47 and July settled 21 down at $14.75. Volume was heavy and estimated at 2,455 futures and 343 options, down from the 894 futures and 175 options that traded on Tuesday.
Shatkin, Arbor was a featured selling in what appeared to be long liquidation of a fund position, traders said. Commercial buying out of RJ O'Brien at $14 and below brought the market off its lows.