(Adds Philippine comment, background, updates prices)
By Michael Byrnes
SYDNEY, May 1 (Reuters) - U.S. rice futures bounced on
Thursday to reverse sharp falls in Chicago the previous day
triggered by easing concerns over global shortages of the food
staple.
At 0316 GMT, Chicago Board of Trade July rough rice futures
<RRN8> were up 0.4 percent at $21.87 a hundredweight from the
close in Chicago on Wednesday.
U.S. rough rice futures had fallen by their maximum limit of
$1.15 a hundredweight for three straight days before Thursday's
bounce.
Marina Bacay of Asia Golden Rice in the Philippines said
speculation was mounting that rice exporting countries would not
offer enough rice to fill the country's May 5 tender.
The Philippines, the world's largest importer of rice, has
raised the amount of rice it wants to import at a tender on May
5 by 35 percent to 675,000 tonnes after failing to attract
desired volumes in earlier auctions due to export curbs by Asian
suppliers.
Traders said Iraq was also in the market for at least
100,000 tonnes of rice from Thailand at a tender.
Top exporter Thailand triggered sharp falls in rice prices
this week after it said it would gradually release 2.1 million
tonnes of stockpiled rice in the domestic market and maintain
its 2008 export target of at least 9 million tonnes.
After falling by 5 percent on Wednesday to $21.78 a cwt at
the close of trading in Chicago, U.S. rice futures opened weaker
on Thursday but found renewed strength soon after the start, in
comparatively quiet trading with most of Asia on holiday.
Rice prices have surged to record highs around the world on
global shortage fears, reinforced by export curbs by key Asian
producers India and Vietnam.
A week ago, global panic sent the Chicago July rough rice
contract to a record high of $25.07.
Soaring prices of rice and other grains have triggered food
riots in Africa and toppled the Haitian government last month.
Corn, soybeans and wheat also gained on Thursday.
The weaker U.S. dollar after the Federal Reserve rate cut on
Wednesday had lent mild support to Chicago grains prices
overall, Garry Booth of commodities broker MF Global said on
Thursday.
May corn <CK8> was up 1 percent at $6.06-¼ a bushel, while
May soybeans <SK8> was up 0.71 percent at $13.11 a bushel. May
wheat <WK8> was up 0.95 percent at $7.94-3/4.
Continued concern over wet weather delaying plantings of
U.S. corn was showing up in Asian markets, Booth said.
Soybean prices have also been rising on fears that farmers
in Argentina might resume a strike as they negotiated with their
government over a hike in export taxes.
(Editing by Ben Tan)
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Keywords: MARKETS GRAINS/