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CBOT rice closes lower as stocks hang over market

CHICAGO: Rough rice futures at the Chicago Board of Trade closed lower on Wednesday as the large rice stocks worldwide continue to hang over the market, traders said.

CBOT rice closed 7 to 9 cents per cwt lower, with March down 9 at $5.70 per cwt.

"The market is still dealing with the reality of very heavy supplies of rice globally," a trader said.

Traders also said the large domestic stocks of rice continued to pose the threat of increased farmer selling. "There's a lot of rice on farms and the economic reality is that crop has to be sold before harvest of the new crop," a trader said.

ADM Investor Services was a noted seller of March and May, E.D. & F. Man International bought March and sold May, Goldenberg Hehmeyer was a small lot buyer of March and May as was Term Commodities.

In spread dealings, Man was noted doing the March/July at 46 cents, premium July.

Rice futures volume was estimated by the CBOT at 600 lots, above the 414 lots traded Tuesday.-Reuters