|
DJ CBOT Rice Review: Higher On Fund-Related Buying
(Comtex Finance Via Thomson Dialog NewsEdge)CHICAGO, Jan 03, 2006 (Dow Jones Commodities News via Comtex) --Rough rice futures traded at the Chicago Board of Trade settled higher Tuesday as fund related buying and spillover from the rest of the floor-helped underpin prices, floor sources said.
January rice rose 11 1/2 cents higher to $8.05 per hundredweight (cwt.), March rice settled up 8 cents to $8.27 per cwt., and May rice also gained 8 cents to $8.52 per cwt.
Early in the session, light speculative buying helped support prices before light liquidation pushed prices back to near unchanged levels, sources said.
Speculative buying, thought to be fund related, along with spillover from the rest of the trading floor and buying thought to be commercial related helped push prices higher after mid-session, sources said. Late in the day, talk that the Philippines was interested in tendering for U.S. rice helped extend the advances, they added.
Buyers and sellers on Tuesday included ABN Amro, R.J. O'Brien, Fimat and Man Financial as buyers with Man Financial and R.J. O'Brien also noted as sellers.
March rice reached a new life of contract high Tuesday, above the level reached late last week.
The Chicago Board of Trade reported 119 deliveries were posted against the January contract Tuesday. The house account of ADM Investor Services issued 109 contracts with the customer account of Tenco stopping 100 contracts.
In other rice news, Vietnam's Ministry of Trade has allowed domestic rice exporters to resume shipments after suspending overseas sales for four months, a government official said. Exports were suspended over the last few months to ensure Vietnam's food security, an official at the Ministry of Trade told Dow Jones Newswires.
Harvesting of the country's winter-spring rice crop is due to begin in February.
Vietnamese firms have signed export contracts for about 600,000 metric tons of rice in the first quarter of 2006, according to state media reports.
Vietnam expects to export 3.2 million metric tons of rice in 2006 compared to 5.2 million tons in 2005.
Philippine rice imports could reach last year's level of 1.8 million metric tons, a senior agriculture official said Tuesday. Romeo Recide, Agriculture assistant secretary for policy and planning said he expects supply and demand conditions to probably keep imports at that level this year.
The government's decision to import up to 1.8 million metric tons of rice in 2005 was done in part to curb speculation in the domestic market, as the country faced a mild El Nino, said Gregory Tan, administrator of the National Food Authority. The NFA is expected to import close to 900,000 metric tons of rice early in the year, NFA Deputy administrator Jessup Navarro said.
The Philippines hopes to conclude its talks with India on its bid to continue implementing quantitative restrictions on rice imports, a senior agriculture official said Tuesday. The Philippines quantitative restrictions ended June 30 last year.
Thailand's total rice exports during the period of Jan. 1-Dec. 21 totaled 7.088 million metric tons compared with 7.772 million metric tons the previous year, the Department of Foreign Trade, Ministry of Commerce reported, according to the U.S. Department of Agriculture's Foreign Agricultural Service.
-By Joe Poncer; Dow Jones Newswires; 312-341-5778; joe.poncer@dowjones.com
(END) Dow Jones Newswires
01-03-06 1544ET
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
INDUSTRIES
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO West, September 1-3, 2009. Los Angeles, CA.
