US rough rice futures on the Chicago Board of Trade rallied on Monday, with the most active contracts rebounding from weakness to rise the 50-cent trading limit, traders said. CBOT rice was under pressure late last week and Monday on a technical correction after making a series of contract highs in recent weeks, traders said.
But once wheat staged a rally, rice followed along. March rice, now in delivery and lightly traded, settled 44 cents per hundredweight higher at $17.75. May closed 50 cents higher at $18.05 and July close 50 cents higher at $18.33. Estimated volume was moderate at 1,399 futures and 167 options.
Global demand for rice remains strong. The Philippines was expected to tender shortly to buy $65 million of US rice-using credit guarantees from the USDA, rice traders said.
The funding would allow the Philippines National Food Authority to buy 80,000 to 90,000 tonnes of US rice, including shipping costs. "Normally they buy locally. The fact they have to come here just shows you how tight it is over in Asia," said Jack Scoville, analyst with.