US rough rice futures on the Chicago Board of Trade ended lower on Wednesday amid US economic jitters and concerns about the possibility of a recession, traders said. The weakness in the US stocks markets during the CBOT trading session intensified recession fears.
It was not until late that the Dow Jones industrial average began to recover, ending nearly 300 points higher. March rice closed 9 cents a bushel lower at $14.03 per hundredweight. The back months closed 10 to 15 cents weaker.
Volume was light estimated at 550 futures and 197 options, compared to the 1,209 futures and 69 options that traded on Tuesday. Commercial buying out of MF Global surfaced at the lows of the day - $14.06 to $14.03 in March, traders said.
There was also some supportive moves stemming from the options trade when RJ O'Brien sold March puts with strikes of $13.40, $13.60 and $14. The US Agriculture Department raised its weekly world market price for long grain rough rice by 36 cents to $9.32 per cwt.