20000312CBOT rice ends mixed, fund buying buoys nearbys

CHICAGO: Chicago Board of Trade rough rice futures closed mixed with nearbys up on fund buying, traders said. Bull spreading pressured new crop September.

Rice closed 15-1/2 cents per cwt higher to 4 lower with March down 15-1/2 at $5.60. May was 13 higher at $5.82. September closed 3 lower at $6.66.

"It was technical fund buying. They were a little short and covered," a trader said.

The US Department of Agriculture in its March supply/demand report Friday confirmed trader thinking that world rice stocks were increasing.

USDA pegged 1999-2000 world rice production at 398.32 million tonnes, above the February forecast for 397.42 million tonnes. US rice output was left unchanged from February at 6.64 million tonnes.

"Selling in the new crop today showed rice's true colours," a trader said referring to the bearish slant world rice stocks has given rice prices.

Refco Inc. bought 120 May, ADM Investor Services bought 75 May and Term Commodities was a light buyer, the traders said.

Rice futures volume was estimated by the CBOT at 650 lots, above the 200 lots traded Thursday.-Reuters