Rice scales fresh record peaks

By Sam Nelson

CHICAGO (Reuters) - U.S. rice futures soared over 3 percent to record peaks on Thursday for the third consecutive day and most contracts locked up the 75 cent per hundredweight trading limit, traders said.

Rice for May delivery reached a record $23.30 per hundred pounds, a massive 127 percent gain from a year ago for a spot futures contract and up 64 percent since the start of 2008.

Aggressive Asian demand for rice, big export sales of U.S. rice stocks and global unrest about shrinking food grain supplies kept sellers away from the rice market.

"Rice is out of control, everybody is worried about food and food prices now," a Chicago Board of Trade floor trader said.

The U.S. Agriculture Department on Thursday said export sales of U.S. rice last week hit a five-month high and nearly half of the sales were earmarked for the Philippines, the world's top importer.

Rice supply has become a major political issue in the Philippines, where President Gloria Arroyo fears hungry voters would take to the streets if rice shortages were to emerge.

"The situation with tight supplies worldwide is a problem because it's a main staple of many people around the world, so we're continuing to see the focus on food shortages," said Shawn McCambridge, analyst for Prudential Securities.

Consuming countries are scrambling for supplies and major suppliers keep clamping down on exports.