UPDATE 1-Balchem Q3 results miss market estimates

* Q3 earnings, revenue miss estimates

* Aim to raise prices further in Q4

* Shares erase early losses, trade slightly higher

Oct 30 (Reuters) - Specialty chemicals maker, Balchem Corp (BCPC.O) posted third-quarter earnings that trailed analyst estimates, hurt by higher raw material costs. [ID:nWNAB5028]

Rise in prices of petro-chemical commodities, its raw material in manufacturing choline, and high prices of oil and natural gas earlier in the quarter contributed to a fall in operating income, Balchem said in a statement.

In the latest quarter, the company's net income rose by about 7 percent to $4.8 million, from the year-ago quarter.

The company added it will implement price increases wherever contractually possible and expects to see some relief in raw material costs for the remainder of 2008.

Shares of the company fell 9 percent to $21.31 in early trade but soon turned around and were trading up 20 cents at $23.23 Thursday morning on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anil D'Silva;)