US rough rice futures on the Chicago Board of Trade fell to a one-month low on Monday amid spillover selling from the other grains, with the back months diving the 50-cent limit, traders said. Corn, wheat and soy fell their respective trading limits, reacting to bigger-than-expected USDA stocks data.
USDA's rice stocks data was a mixed bag. The government cut its US 2008-09 ending stocks estimate to 23.2 million cwt, from 23.4 million. The drop reflected fewer imports. But the government boosted its 2008 US production figure; traders expected a cut. Additionally, USDA reduced its export projection by 5 million tonnes, which was expected due to poor demand and increased world supplies.
Rice is technically weak. Spot January, now in delivery and trading without limits, fell below its 50-day moving average of $14.58 per cwt to end 52 cents down at $14.56. March, May, July ended down the 50-cent limit; March closed at $14.35. Price limits expand to 75 cents, from 50 cents for Tuesday trade after the limit-down move.