US rough rice futures on the Chicago Board of Trade tumbled the 50-cent trading limit on Thursday as reminders of weak demand for American rice triggered aggressive selling, traders said. USDA weekly export sales data was disappointing. Only 23,900 tonnes of US rice sold for export last week. That was down 33 percent from the week before.
Contract lows were set in the front five months and the spot price is at a 15-month low. March rice closed down the 50-cent limit at $11.80. Selling escalated when March broke below $12.10. Roughly 400 March contracts traded limit down.
Price limits will remain at 50 cents since only one contract closed limit-down. Volume was heavy estimated at 1,884 futures and 180 options. Firms bought March $14 calls and sold May $10 puts, a supportive move. A bulk of the option trade featured traders liquidating positions.