CHICAGO, Dec 21: Chicago Board of Trade rough rice futures gained back most of this week’s losses to close higher on Friday as speculators took profits before the weekend, floor traders said.

Rough rice futures ended 4 to 12-1/2 cents per hundredweight up, with January making the biggest gains up 12-1/2 at $3.98-1/2.

Friday’s bull moves followed Wednesday’s fall to a new contract low. The market continued to digest hopes that the United States would export a record amount of rice this year but struggled with a huge stockpile of rice.

Even after January dropped to a new low of $3.74 this week, the front month only lost a penny on the week.

Volume was heavy on Friday estimated at 2,268 lots, up from Thursday’s trade of 977. Rice options volume was pegged at 319 contracts.

Friday’s Commodity Futures Trading Commission report showed that commodity funds were net short 345 futures/ options as of Dec. 17. Shorts jumped by 480 lots and longs increased by 98 from the previous report.

WHEAT: Soft red winter wheat futures at the Chicago Board of Trade broke down technically on Friday to close near a five-month low as a sluggish export picture and double-digit fall in Kansas City wheat futures added pressure, traders said.

The tumble in Chicago came amid active put selling in combination with futures sales by UBS Warburg. The move drove wheat to its lowest point since July 30, when March wheat dipped to $3.38 per bushel.

With no new fundamental inputs and funds accumulating a short position, it doesn’t take much to move the market,” said Shawn McCambridge, an analyst with Prudential Securities.

CBOT March wheat ended 7-1/2 cents lower at $3.42-3/4 per bushel. The other months followed suit to close 5 to 6-1/2 cents lower.—Reuters