US rough rice futures on the Chicago Board of Trade ended higher for the fifth consecutive day on Tuesday, hitting a two-month high on concerns about the crop as tropical storms and late planting delayed harvest, traders said. "There is still some issues with how much we are going to harvest and when we are going to get it out," said analyst Jack Scoville with The Price Futures Group.
November rice ended 33 cents higher at $20.04 per hundredweight, after reaching a day high of $20.09. Fallout rains during September from Hurricanes Ike and Gustav soaked rice fields just as harvest was about to get underway. USDA reported late Monday that the US rice harvest was 38 percent complete, behind the five-year average of 56 percent.
In the top rice state of Arkansas only 30 percent was off the field, versus 56 percent for the seasonal average. Louisiana Sate University rice specialist Johnny Saichuk said recent storms inflict an estimated $50 million in damage to the Louisiana rice crop.
Estimated volume was moderate at 1,115 futures and 46 options. Daily limit reverts back to 50 cents from 75 cents as the market did not see a limit move on the close. South Korea has bought 21,704 tonnes of brown rice for $1,083.70 per tonne but passed on a tender to buy 35,947 tonnes due to a lack of interest, the state-run Korea Agro-Fisheries Trade Corp said on Tuesday.