Oryza U.S. Rough Rice : Bids Decline on Futures

The U.S. cash rice market was fairly quiet today as bids declined amid a sell-off in the futures market while seller price ideas continue to hold at levels most buyers are unwilling to pay.

Analysts suggest that if the weakness in the futures market continues, it could create opportunities for buyers to cancel Chicago Board of Trade warehouse receipts at levels lower than where they could buy cash rice from farmers or resellers.

As of today, offers from farmers were unchanged near $16.25-$16.50 per cwt fob farm (about $358-$364 per ton) for 50 pounds of whole rice or better for May-June shipment while offers from resellers increased to less attractive levels despite weakness in the futures market.

Bids from some mills decreased to around $14.85 per cwt (about $327 per ton) for May-June delivery which generated absolutely no selling interest while bids from smaller mills and exporters declined to around $15.85 per cwt (about $349 per ton) for May-June delivery of pounds although at least one small trade occurred around $16.15 per cwt (about $356 per ton) for prompt shipment.