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CBOT rice ends higher on speculative buying

CHICAGO: Rough rice futures at the Chicago Board of Trade closed higher on Tuesday on speculative buying and in tandem with surges in other markets.

CBOT rice settled 4 to 9 cents per hundredweight (cwt) higher, with May up 5 cents at $5.79.

"Rice was higher in sympathy with the other markets, and on light speculative buying," a CBOT trader said.

CBOT corn, wheat and soy complex futures surged on Tuesday amid concerns over dry weather conditions in the United States. On Monday, the government forecast drought in the Midwest corn and soybean growing region.

The trader said ADM Investor Services, Rosenthal Collins and E D&F Man International were among the buyers, while Salomon Smith-Barney was a net seller.

"Smith-Barney sold about 30 May contracts and then came in to buy about 10 May contracts," he added.

He said there was also buying interest in new crop November, which gained 9 cents on the day.

On Tuesday, the US Department of Agriculture reported no change in world market prices until March 21.

Rice futures volume was estimated by the CBOT at 450 contracts, compared to 568 traded on Monday. -Reuters