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CBOT rice closes lower on technical sell-off

CHICAGO: Rough rice futures at the Chicago Board of Trade closed lower Friday on a technical sell-off with the key bearish fundamental of large rice stocks also remaining intact, traders said.

Rice closed 7 to 8 cents per cwt lower, with March down 7 at $5.56.

"There was widespread selling and it was technically based," a trader said.

Traders said the demand for rice remained satisfactory but the large supply of rice worldwide continued to stymie attempts to rally prices.

The technical breakdown started at $5.58 per cwt in the March when sell stops were hit all the way down to almost the session low of $5.48, traders said. "There were stop loss sell orders from 58 down to 49," the trader said.

ADM Investor Services, LFG, E.D. & F. Man International, Lind Waldock and Rosenthal Collins were noted sellers, traders said.

Locals were featured buyers which was mainly local short covering, they said. Term Commodities bought 80 to 100 lots of March and Farmers Commodities Corp. was a featured purchaser of 50 March, traders said.

Rice futures volume was estimated by the CBOT at 1,100 lots, above the 1,005 lots traded Thursday.-Reuters