20000212

CBOT rice ends higher on floorwide rally

CHICAGO: Rough rice futures at the Chicago Board of Trade closed higher on Thursday on spillover bullish enthusiasm from strong fund-related rallies in wheat, corn and soybeans, traders said.

Rice closed 1 to 3 cents per cwt higher, with March up 2 at $5.70 per cwt.

"Rice fundamentals aren't bullish at all and most of the buying here was just spillover from the other pits, plus there was quite a lot of spreading," a trader said.

Fund buying tied to strong export sales numbers boosted wheat, corn and soybeans, the traders said.

The weekly rice export sales numbers were in fact bearish for rice futures, the traders said. The US Department of Agriculture's weekly export sales report showed net export sales of US rice during the week ended Feb. 3 at 48,900 tonnes, 26 percent less than the previous week and 40 percent below the four week average.

"IT was very slow with the May/July spread predominant," a trader said.

Lind Waldock spread 350 May/July with the spread done at mostly 23 cents per cwt, premium July, spreaders said.

Net outright buying and selling was thin with early speculative buying met by some profit taking through the session and prices closed near the day's highs.

Rice futures volume was estimated by the CBOT at 1,700 lots, above the 1,126 lots traded Wednesday.

Rice options volume was estimated at 50 contracts.-Reuters