US rice futures on the Chicago Board of Trade slipped on Monday as a firmer dollar spurred selling in commodities, including rice, traders said. When the dollar strengthens, it increases the cost of US commodities for overseas buyers and sparks managed funds to sell grains and other dollar-denominated commodities.
Dollar firmed after the World Bank cut its 2009 growth forecasts for most economies, increasing investor's appetite of safe-haven currencies like the US dollar. CBOT July rice ended 15 cents lower at $12.15 per cwt. September closed 22 weaker at $12.17. But prices kept range-bound, keeping with the same trading range set on Friday.
Lackluster interest in US rice continues to overhang the market. Volume was light estimated at 507 futures and five options. USDA late Monday rated 54 percent of the US rice crop good to excellent on Sunday, down 1 percentage point from the week before and year-ago rating of 70 percent good to excellent.