Chicago Board of Trade rough rice futures closed lower on Thursday, pressured by speculative and commercial selling, along with declines in outside markets, traders said. "We spent the whole day in negative territory," a floor source said. July rice closed down 8 cents per hundredweight at $6.18 after dropping to a new contract low at $6.11.
Most-active September settled 7-1/2 cents lower at $6.36 per cwt after reaching a new low at $6.30. Volume was light, estimated by the exchange at 416 futures and 28 options, down from 797 futures on Wednesday.
Commercial selling from Man Financial and Rosenthal Collins was the feature, but Man also bought September between $6.30 and $6.33, a floor source said.
Short covering by locals also helped lift prices off the days lows. Rice futures were influenced by declines in grains and financial markets, with news of bombings on the London transit system adding to the volatility.
CBOT grain traders were also fixated on weather patterns, and uncertainty about the direction of Hurricane Dennis kept corn and soy prices gyrating.
Some updates had the storm tracking a bit farther east after hitting US shores on Sunday, a path that would likely limit rainfall in dry areas of the Midwest.
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