US rice futures on the Chicago Board of Trade fell to a three-week low on Wednesday, hit by technically sales that began during the overnight session, traders said. Rice dived despite amid a bearish 2009/10 US rice ending stocks estimate and a supportive world ending stock forecast issued by USDA.
September rice closed down 33-1/2 cents, or 2 percent at $13.38-1/2 per cwt. November ended 32-1/2 lower at $13.63. USDA pegged 2009/10 world rice end stocks at 84 million tonnes, down 11 percent from last month, reflecting a smaller Indian crop due to dry conditions as monsoon rains disappoint.
USDA raised its 2009-10 US rice end stocks forecast to 23.9 million cwt, from 22.7 million in July, given expectations for a slightly bigger 2009 harvest than estimated last month. The government put US rice harvest at 211.2 million cwt, versus 211.0 million last month. India rice crop hopes slashed by weak monsoon rain. USDA cut its weekly world market price for long grain rough rice by 6 cents to $11.31 per cwt.