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Wednesday, April 02, 2008
CHICAGO, Apr 02, 2008 (Dow Jones Commodities News via Comtex)
By Tom Polansek Of DOW JONES NEWSWIRES
Nearby Chicago Board of Trade rice futures closed limit up Wednesday in reaction to a solid increase in global prices, floor traders said.
May rice finished limit up, or 50 cents higher, at $19.79 per hundredweight and was synthetically bid 5 to 10 cents higher, a trader said. November rice ended 30 cents higher at $18.14.
Indicative rice prices in Asia were mostly higher Wednesday from Friday on surging domestic prices in most origins amid concern that supplies are dwindling, exporters said. Thai 100% grade B was indicated Wednesday at $780-$800/ton, free-on-board Bangkok, 5% broken at $770-$780/ton, FOB, and parboiled at $800/ton, FOB. The prices were about $80/ton higher than price indications given Friday.
"We had a bump in world prices," a CBOT floor trader said.
Worries about tightening world supplies and solid demand are underpinning global rice prices, analysts said. On Monday, India banned the export of non-basmati rice and raised the price of basmati rice that can be exported, to $1,200/ton.
That followed India's decision last week to raise the minimum export price of non-basmati rice for the second time in a month to $1,000 a metric ton, on a free-on-board basis, from $650/ton earlier. The move was aimed at ensuring local supply.
The governments of Cambodia and Egypt have also banned the export of rice to calm domestic markets and ensure sufficient supply.
Vietnam, meanwhile, reduced its rice export quota last week by 1 million tons to 3.5 million tons for the first 10 months of the year in a bid to ensure supplies through government-sanctioned contracts.
Short covering in the CBOT rice pit also pushed prices higher Wednesday, a floor trader said. There was interest in buying May calls, and commercials were offering puts, he said.
Wednesday, April 02, 2008
CHICAGO, Apr 02, 2008 (Dow Jones Commodities News via Comtex)
By Tom Polansek Of DOW JONES NEWSWIRES
Nearby Chicago Board of Trade rice futures closed limit up Wednesday in reaction to a solid increase in global prices, floor traders said.
May rice finished limit up, or 50 cents higher, at $19.79 per hundredweight and was synthetically bid 5 to 10 cents higher, a trader said. November rice ended 30 cents higher at $18.14.
Indicative rice prices in Asia were mostly higher Wednesday from Friday on surging domestic prices in most origins amid concern that supplies are dwindling, exporters said. Thai 100% grade B was indicated Wednesday at $780-$800/ton, free-on-board Bangkok, 5% broken at $770-$780/ton, FOB, and parboiled at $800/ton, FOB. The prices were about $80/ton higher than price indications given Friday.
"We had a bump in world prices," a CBOT floor trader said.
Worries about tightening world supplies and solid demand are underpinning global rice prices, analysts said. On Monday, India banned the export of non-basmati rice and raised the price of basmati rice that can be exported, to $1,200/ton.
That followed India's decision last week to raise the minimum export price of non-basmati rice for the second time in a month to $1,000 a metric ton, on a free-on-board basis, from $650/ton earlier. The move was aimed at ensuring local supply.
The governments of Cambodia and Egypt have also banned the export of rice to calm domestic markets and ensure sufficient supply.
Vietnam, meanwhile, reduced its rice export quota last week by 1 million tons to 3.5 million tons for the first 10 months of the year in a bid to ensure supplies through government-sanctioned contracts.
Short covering in the CBOT rice pit also pushed prices higher Wednesday, a floor trader said. There was interest in buying May calls, and commercials were offering puts, he said.
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