Chicago rice reverses early fall to rise in Asia

TOKYO (Reuters) - Chicago Board of Trade U.S. rough rice futures for July delivery reversed earlier losses and rose 1 percent on Monday, bolstered by tight near-term supplies.

As of 2348 GMT, the CBOT rice contract for July delivery RRN8 was up 23 cents, or 1 percent, at $23.20-½ per hundredweight, or cwt, in electronic trade in Asia.

The contract earlier fell as low as $22.70-½ after the U.S. Department of Agriculture late last week forecast a record world crop in 2008.

In Chicago, rice closed mixed on Friday after a volatile session, rising the $1.15 limit overnight then plummeting $1.15 on the USDA crop data.

Rice remained underpinned by prospects for reduced output from cyclone-devastated Myanmar. The USDA forecast the cyclone cut Myanmar's rice crop by 7 percent.

Elsewhere, CBOT soybean futures extended gains from late last week. The actively traded July soybean contract SN8 rose 0.6 percent to $13.66 per bushel on Monday, adding to a 4 percent rally in the previous session in Chicago.

The USDA on Friday trimmed its projection of how many soybeans will be left at the end of the 2007/08 by 15 million bushels to 145 million and pegged 2008/09 soy stocks at 185 million for the marketing season.

(Reporting by Risa Maeda)