US rice futures on the Chicago Board of Trade closed higher on Wednesday, supported by the slow US harvest, traders said. But prospects for the US supply to build in the coming year overhang the market. November ended up 7-1/2 cents at $13.22-1/2 per cwt; January up 7-1/2 at $13.48. Firms were rolling their November positions into the deferreds.
There were 120 November/January spreads traded and 103 November/March. In options, call buying was featured with interest in the November $13.20 calls and January $13.40 calls. Option volatility remains low, near 18 percent compared to 30 to 40 percent in corn and soybeans. Low volatility is signal for range-bound prices, traders said.
Rains moved through the Mississippi Delta this week, including top rice producer Arkansas, stalling harvest efforts. About half the Arkansas rice crop was harvested by Sunday, compared to the typical pace of 79 percent by early October. Nation-wide 62 percent was off the field, lagging the usual pace of 78 percent. USDA lowered its weekly world market price for long grain rough rice by 22 cents to $11.24.