Chicago Board of Trade rough rice futures closed higher on Monday as end-of-the-month short covering helped values rebound from last week's slide to contract lows, traders said. March rice settled up 11-1/2 cents at $6.67 per hundredweight, with May up 15 cents at $6.90. Bear spreading by Cargill Investor Services, RJ O'Brien and Man Financial was a feature late in the session, widening the March/May spread to a 24-cent carry, from 19-1/2 cents at Friday's close.

Traders sold March and bought May, rolling out of their March positions ahead of first notice day for deliveries on February 28, traders said.

Commercials traded the opposite side of the spread, buying March and selling May between 21 to 24 cents, traders said. Overall volume was estimated at 1,292 futures and 33 options. Export news was quiet.

In other world news, heavy rains and flooding have reduced prospects for the Dominican Republic's 2005 rice crop, a US Department of Agriculture attache report said on Monday.

Copyright Reuters, 2005