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CBOT rice closes lower as large world stocks cited

CHICAGO: Rough rice futures at the Chicago Board of Trade closed lower Monday on persistent references and reminders of the burdensome supply of rice worldwide, traders said.

Rice closed 1 to 4-1/2 cents per cwt lower, with March down 3 at $5.64.

"Economic reality is beginning to raise its ugly head. There's just too much rice. Consumption is strong but there is a big supply of rice to deal with," a trader said.

USDA Friday in its February supply/demand report pegged world rice production at a record 397.4 million tonnes in 1999/2000, up about 1 million tonnes from last month's estimate. Global ending stocks were boosted to a record 59.4 million tonnes, up about 600,000 tonnes from last month's forecast.

"It was very, very slow with commercials not playing a prominent role today but it looked like a little hedging showed up," the trader said.

E.D. and F. Man International was a light seller of March, and small lot speculative selling was met by local buying, the traders said.

Rice futures volume was estimated by the CBOT at 250 lots, below the 707 lots traded Friday.-Reuters