Rough Rice To Average US$13.00/cwt In 2009

We expect front-month rice to trade largely sideways within the US$11.00/cwt to US$13.50/cwt range over the short term, and in so doing, likely break above medium-term trendline resistance at around US$12.00/cwt. However, we recognise that the contract will remain vulnerable to global equity market movements and shifts in risk appetite. With this in mind, we highlight that a slide below US$11.00/cwt would be a very negative price signal, presaging further downside to around US$10.50/cwt.

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