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CBOT rice ends mixed, but recovers from 3-week low

CHICAGO: Rough rice futures at the Chicago Board of Trade ended mixed on Wednesday, with March contracts rebounding after sinking to the lowest levels in nearly three weeks, traders said.

CBOT rice settled 5 cents per hundredweight (cwt) lower to 2 higher, with March up 1-1/2 at $5.47, after falling as low as $5.37 for the contract's lowest price since $5.33 on Dec. 30.

Prices continued to consolidate within a range established the past few weeks, traders said, though the market's technical tone remained largely bearish.

U.S. cash market activity has improved, buoying prices, with southern mills busy on domestic and small export orders through mid-February, according to this week's Creed Rice Market Report. But worldwide, prices were weak amid an outlook for abundant supplies. The Creed Rice report said the new crop is beginning to hit the Thailand market.

"The market has a relatively soft undertone as the new crop is beginning to hit the market in volume," the report said. "The demand outlook is suspect given the recently imposed 30 percent import tariff in Indonesia. Further, Bangladesh has stated that they are enjoying record grain stocks and will not likely import rice this year."

The latest government releases reflected a soft cash market tone, traders said. In its weekly world report released Tuesday, the U.S. Department of Agriculture listed long grain whole kernel rice at 7.42 cents per lb, compared to 7.6 cents the previous week.

Rice futures volume in Wednesday's pit session was estimated by the CBOT at 600 contracts, compared with 505 Tuesday.-Reuters