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CBOT rice ends lower on burdensome world supply

CHICAGO: Rough rice futures at the Chicago Board of Trade closed lower on Tuesday on the large supply of rice worldwide amid the satisfactory demand, traders said.

Rice closed unchanged to 11 cents per cwt lower, with March down 11 at $5.53.

"Demand isn't the problem, it's the supply, there is just too much rice around," a trader said.

USDA Friday in its February supply/demand report pegged world rice production at a record 397.4 million tonnes in 1999/00, up about 1 million tonnes from last month's estimate. Global ending stocks were boosted to a record 59.4 million tonnes, up about 600,000 tonnes from last month's forecast.

ADM Investor Services, Refco Inc. and E.D. & F. Man International each were noted sellers of the March, traders said.

Traders said liquidation of the March contract was beginning to surface prior to the Feb. 29, first notice day for deliveries on the March contract.

Rice futures volume was estimated by the CBOT at 1,200 lots, above the 172 lots traded Monday.-Reuters