Powerful Hurricane Ike heads toward the Bahamas: NHC

NEW YORK (Reuters) - Hurricane Ike churned across the Atlantic Ocean toward the Bahamas on Thursday after having rapidly mushroomed into a dangerous Category 4 hurricane, the U.S. National Hurricane Center said in its latest report.

Ike quickly intensified overnight from a tropical storm Wednesday morning into a Category 4 hurricane with winds of 140 miles per hour by Thursday morning.

It was located about 525 miles northeast of the Leeward Islands, the NHC said in its 11 a.m. EDT report. The Leeward Islands include the Virgin Islands, Anguilla, Saint Martin, Barbuda, Antigua, Montserrat and Guadeloupe.

The weather models forecast Ike would reach the Bahamas over the weekend and Cuba or Florida early next week.

The NHC expects Ike to weaken to a Category 3 hurricane with winds of 111 to 130 mph in about 24 hours.

It is too soon to say whether Ike will reach the Gulf of Mexico.

Both energy and commodity markets were eyeing the latest tropical storm, as electric companies in Louisiana were slowly restoring power after Hurricane Gustav drenched the Gulf Coast on Monday.

Energy traders watch for storms that could enter the Gulf of Mexico and threaten U.S. oil and gas production and refining facilities along the coast.

Commodities traders likewise watch storms that could hit agriculture crops like citrus and cotton in Florida and other states along the Gulf Coast. Orange juice futures surged as Ike seemed on track to hit the southern Florida citrus belt, brokers said.

Since coming ashore in Louisiana as a Category 2 hurricane Monday morning, the remnants of Gustav were moving over Missouri and Illinois Thursday morning after leaving more than 1.8 million homes and businesses without power in the lower Mississippi Valley.

HANNA TO STRENGTHEN, JOSEPHINE WEAKENS

Tropical Storm Hanna, meanwhile, weakened slightly as it moved northwest over the Bahamas toward the Carolinas.

The NHC expects Hanna to make landfall near the North Carolina-South Carolina border early Saturday before marching up the U.S. East Coast, reaching the New York City area early Sunday.

The NHC forecast Hanna would briefly strengthen back into a Category 1 hurricane with winds of 74 to 95 mph in about 36 hours before reaching the Carolina coast.

Elsewhere in the Atlantic, Tropical Storm Josephine weakened a little Thursday morning as it moved toward the Central Atlantic. Josephine was located about 520 miles west of the southernmost Cape Verde Islands.

The NHC expects Josephine to remain a tropical storm over the next five days. It is too soon for the weather models to indicate whether Josephine would reach North America.

(Reporting by Scott DiSavino; Editing by Marguerita Choy)