UPDATE 2-Manila draws sharply higher bids at rice tender

* Offers range between $598-$697 a tonne

* High bids may be due to series of tenders

* Philippines may not award entire 600,000 T volume (Recasts, adds details on offers, comments)

By Manolo Serapio Jr.

MANILA, Dec 1 (Reuters) - The Philippines drew sharply higher bids at a tender for a record 600,000 tonnes of rice on Tuesday, suggesting the world's top rice buyer may pay a high price to secure supplies after storms ravaged crops.

Bids for the tender -- the first of three of the same volume this month -- ranged from $598 to $697 a tonne cost and freight, above the budgeted cost and as much as a quarter up from offers at a Nov. 4 tender.

"It's the message being given by the world's top importer, that it really needs the commodity and that it is in dire straits," said Shahzad Naqi, chief executive at Pakistani rice exporter Peak Holding.

"The way things are going, I won't be surprised that by the time the third tender opens we see bids crossing $800."

The Philippines is going to the market for a total 1.8 million tonnes of rice this month, pushing its total imports for next year near the record of 2.3 million tonnes in 2008.