US rough rice futures on the Chicago Board of Trade soared to an all-time high above $24 on Wednesday as fears about the world's supply of rice triggered panic buying in futures and cash physical markets, traders said. May rice ended 61 cents higher at $24.46 per hundredweight, after hitting a contract high of $24.49-1/2.
July closed 62 up at $24.82 following its rise to $24.85 the record top for CBOT. Futures volume was large estimated at 2,385 contracts. Wal-Mart Stores Inc's Sam's Club, the No 2 US warehouse club operator, said on Wednesday it is limiting sales of rice due to recent supply and demand trends a sign of the times. Brazil temporarily suspends rice exports to safeguard domestic supply, the age ministry announced after the close.
Price limits revert back to 50 cents from 75 cents for Thursday, as the market did not settle limit-up. Commercial selling of out-of-the-money put options was supportive. RJ O'Brien sold 180 July $22 puts, traders said. Commercial business out of Term Commodities and MF Global bought the July puts for price protection, traders said. USDA kept its weekly world market price for long grain rice at $14.11 per cwt. CBOT rice volume was on the heavy side at an estimated 2,181 futures and 61 options.