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CBOT rice closes lower on floorwide selloff

CHICAGO: Rough rice futures at the Chicago Board of Trade closed lower Thursday on spill-over pressure from declines in other commodities, traders said.

CBOT rice closed 5 to 11 cents per cwt lower, with March down 7 at $5.63.

"It was a sympathetic move with grains, there was some long liquidation by funds," a trader said.

CBOT soybean futures fell sharply Thursday on improved crop weather in South America. Traders said soybeans led everything lower in slow trading and low volume.

Traders also continued to cite the overall abundant supply of rice worldwide as rationale for caps on attempts to rally prices.

Export sales remain brisk but the business has been priced in the market, the traders said.

"They're very good exports but the market already knew the sales were on the books so we need some dramatic demand," a trader said.

USDA Thursday reported that for the week ended Jan. 27, net export sales of US rice totalled 108,400 tonnes, up 5 percent from the previous week and 36 percent above the four-week average.

Exports of 175,200 tonnes were a marketing year high and 91 percent above the previous week's tally.

E.D. & F. Man International and ADM Investor Services were key sellers of the March contract, traders said.

Term Commodities bought roughly 30 lots each of March and May, traders said.

Rice futures volume was estimated by the CBOT at 1,100 lots, above the 624 lots traded Wednesday.-Reuters