U.S. rice slides as Thailand taps stocks

By Christine Stebbins

CHICAGO (Reuters) - U.S. rice futures fell more than 4 percent on Tuesday, deepening a retreat from last week's record high as top exporter Thailand said it would release public stocks and traders anticipated Asian harvests.

However, news that India would tax basmati rice exports as part of a series of measures unveiled on Tuesday to tame inflation and secure food supplies was supportive, traders said.

Chicago Board of Trade rice for May delivery fell $1 per cwt to $22.30 by midday. There is no limit in the nearby month on Tuesday, first position day for May futures deliveries. Most of the other months tumbled the maximum daily trading limit of 75 cents.

The rice market was technically weak -- a trend that started late last week when it rallied to a record top above $25, followed by a limit-down move. Rice has seen a series of record highs this month on fears of tight world supplies and strong demand.

"Rice prices have nearly doubled this year and that strong rally is triggering some sell-offs," said a trader at Samsung Securities.

Thailand's domestic rice prices dropped by 1,000 baht to 25,000 baht ($791) a tonne on Tuesday after the government said it would gradually release 2.1 million tonnes of stockpiled rice onto the domestic market to fight rising inflation.

But Asian traders cautioned that the surge may not be over, especially with a big rice tender for 675,000 tonnes from the Philippines still to fill.

CBOT WHEAT/SOY/CORN SLIDE