Rice To Average US$10.75/cwt In 2010

In the short term, we believe that front-month (September) rough rice prices could trend higher, given that it is currently trading at US$11.66/cwt, higher than US$11.50/cwt - a level we had highlighted earlier as a significant resistance level (see:'Rice Firming Up', Aug 24 2010). Should prices sustain weekly closes above this level, the technical picture would start to look bullish. Upside potential is reinforced by the fact that net speculative positions are rebounding strongly from their lows between April and August into positive

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