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CBOT rice closes lower on floorwide sell-off

CHICAGO: Rough rice futures at the Chicago Board of Trade closed lower Wednesday on overall bearish sentiment stemming from the large stocks of rice and on a massive speculative sell-off in other CBOT agricultural futures pits, traders said.

Rice closed 6 to 9 cents per cwt lower, with March down 6-1/2 at $5.32-1/2. May was down 6 at $5.62.

"It's a spec market driving it to the bottom of the trading range but this time the demand for cash rice isn't showing up," a trader said referring to the bearish sentiment for US rice futures and cash rice prices. "Also, there's plenty of rice around and now they're getting a little rain."

Forecasts for improved US crop weather hit CBOT grains and the soy complex hard Wednesday with fund long liquidation hammering prices to the day's lows by the close.

Rice futures weren't immune from the sell-off, rice traders said.

Technically the rice market also has been breaking down with the chart skid starting last week, the traders said.

"Technically we turned down last week and it's still eroding but there could be a little bounce in here soon," a trader said.

Technicians said sell-stops in CBOT rice were hit in the March at $5.35 per cwt and in the May at $5.65.

ADM Investor Services and E.D. & F. Man International were key sellers of the March, traders said.

The March/May traded at 29 cents and 29-1/2 cents, premium May but the spread activity was lighter Wednesday than it had been the previous two sessions, the traders said.

"I think they're cleaned out of the March quite a lot now and ready for delivery," a trader said.

First notice day for deliveries on the CBOT March contracts is Feb. 29.

CBOT rice futures volume was estimated by the CBOT at 1,000 lots, below the 1,202 lots traded Tuesday.-Reuters