20000101

CBOT rice ends higher on US exports, covering

CHICAGO: Rough rice futures at the Chicago Board of Trade ended higher on Thursday, buoyed by strong US weekly exports and year-end short covering.

CBOT rice settled 7 to 8-1/2 cents per hundredweight (cwt) higher, with January up 8 at $5.140.

The market was also supported by strength in corn, wheat and soy complex on the last day of trading this year. Confetti filled the air as the closing bell rang at the exchange.

"Exports were very good and we also saw some year-end covering," a CBOT trader said.

The US Department of Agriculture, in its weekly export sales report issued before the market opened Thursday, listed net US sales in the week ended Dec. 23 at 107,100 tonnes.

The tally was one-third above the week earlier and 42 percent above the 4-week average.

Meanwhile, the Commodity Futures Trading Commission has approved amendments to the delivery terms of the CBOT rice futures contract, the CBOT said this week.

The amendments will change locational delivery differentials for non-mill site warehouses and add quality specifications for heat-damaged and stained rice. The changes take effect with the September 2000 contract and beyond.

CBOT traders said there were bids and offers but there were no trades in those contracts. The September and November 2000 contracts were offered at more than $1.00 above July.

Rice futures volume was estimated by the CBOT at 250 contracts on Thursday, compared to 1,090 traded on Wednesday.-Reuters