U.S. rice futures leap to record; corn near high

By Michael Byrnes

SYDNEY (Reuters) - U.S. rice futures extended their run of records on Friday, surging by almost 4 percent as the scramble to bolster stockpiles of Asia's staple food showed little signs of abating.

Chicago Board of Trade July rough rice futures rose to $24.550 a hundredweight in Asian trade, a fourth successive record high, taking this year's gains to over 76 percent amid aggressive Asian demand and global unease over shrinking food supplies after several big suppliers cut back on exports.

Tightening supplies were evident in the Philippines, the world's biggest rice importer, where authorities received offers for only 325,750 tons of rice in a tender for 500,000 tons, the third time in a row it has failed to secure the full amount.

On top of that, rice planting in several U.S. states, including top producer Arkansas, is off to a slow start due to overly wet conditions. Although the United States is not a major exporter, many buyers are looking to U.S. shipments to partly make up for curbed output from Vietnam, India and elsewhere.

Analysts warned that the world faced high rice prices for the foreseeable future.

"Rice's rise shouldn't be seen as temporary, but part of the bull market that has hit commodities across the board," said Akio Shibata, director at Marubeni Research Institute in Tokyo.

"It is likely to stabilize at a high level, or even move higher," he said. "Supply just cannot keep up with demand."

In Asia, rice is far more than just a commodity.