| Date: |
29-09-2010 |
| Subject: |
Rice Futures Rise to Five-Month High on India Demand Speculation |
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Rice climbed to the highest price in almost five months on speculation that demand will increase in India, the second-biggest consumer.
The country will extend a policy that allows tax-free imports of the grain until Jan. 31, Farm Minister Sharad Pawar said today. The government will also continue a ban on exports of non-basmati rice, Trade Minister Anand Sharma told reporters. The commodity is up 11 percent this month.
“The news that India is going to allow duty-free imports, that produced some buying this morning,” said Jack Scoville, a vice president at Price Futures Group Inc. in Chicago.
Rice futures for November delivery were little changed, closing down 0.5 cent to $12.56 per hundred pounds at 1:15 p.m. on the Chicago Board of Trade.
Earlier, the price touched $12.64, the highest level for a most-active contract since May 3. The grain has gained 30 percent since the end of June, partly because floods in Pakistan curbed production.
China is the largest rice consumer and producer.
Source : bloomberg.com
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