US rough rice futures at the Chicago Board of Trade closed lower on Wednesday as traders took profits after prices hit a five-week high amid a weaker dollar. Falling Asian rice prices were bearish. January rice ended 13 cents lower at $14.98 per hundredweight. More actives March closed 18 down at $14.98-1-2 after falling the 50-cent limit.
Volume was light estimated at 598 futures and 35 options. A weaker dollar is typically a buy signal for US commodities as it makes dollar-denominated commodities more attractive to overseas buyers and lowers the cost to hold grain.
Dollar slipped to 13-1-2 year low versus the yen after the Federal Reserve late Tuesday announced a US interest rate cut zero to 0.25 percent from 1 percent. Thailand's benchmark price quoted at $520 per tonne, down 6 percent from early December as demand slumps-exporters. Weekly world market price for long grain rough rice was unchanged at $13.37 per cwt.
Japan buys 65,000 tonnes US rice in regular tender-government. Vietnam '09 rice, coffee export prices to fall- government report Vietnam and the Philippines may be in talks for a deal involving shipment of as much as 500,000 tonnes of Vietnamese rice next year-traders.