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CBOT rice ends up on commercial buying

CHICAGO: Rough rice futures at the Chicago Board of Trade closed higher Tuesday on commercial buying but the trading was quiet and volume thin, traders said.

Rice closed 7 to 11 cents per cwt higher, with March up 10 at $5.69.

Traders said Term Commodities was the noted buyer of March at roughly 50 to 60 lots. Additionally, 50 lots of the March/May traded Tuesday at 26 cents, premium May.

Local short covering helped buoy prices with the local demand seen coming after the commercial buying ensured, the traders said.

"The locals were a little short and started covering after Term bought a little," a trader said.

Export news remained relatively routine with Indonesia setting a tender to buy 100,000 tonnes of foreign rice, likely from China, Pakistan, Vietnam and Thailand.

"Everyone has plenty of rice for sale which is why we're not going to rally much any time soon," the trader said.

Demand for rice has remained brisk this marketing year but rice stocks are plentiful in the US and elsewhere, the traders and analysts have said.

Rice futures volume was estimated by the CBOT at 270 lots, below the 542 lots traded Monday.-Reuters