CHICAGO (March 27 2003) - The Bush administration has asked Congress for$320 million in additional funds to buy emergency food for Iraq, includinghigh-protein peas and beans and vegetable oils, US Agency forInternational Development Administrator Andrew Natsios said on Tuesday.

"To the extent that we can use American commodities, we will do that,"Natsios told reporters during a briefing on humanitarian relief effortsfor Iraq. But he added that some of the commodities would likely bepurchased in countries closer to Iraq, where there are fears that theUS-led war could cause food shortages among civilians in coming weeks.

The request for more food aid for Iraq was included in a bill that willmove through the US Congress to provide $75 billion to pay for the war andto aid allies supporting the effort to remove Iraqi President SaddamHussein from power.

Details were not available on the amounts of food $320 million would buy.

The $320 million would be in addition to $60 million AID already has giventhe United Nation's World Food Programme for fuel, trucks, warehouses andlogistical support related to delivering food aid to Iraq, Natsios said.

US and British troops have been working to secure Iraqi ports so that foodaid can be moved into the country quickly once it arrives in the region.

The Bush administration is hoping that not long after the war ends, a UNoil-for-food programme will be resurrected.

Until the war, that programme brought about 450,000 tons of food rationsinto Iraq a month.

None of that food was supplied by the United States, however.

The Commodity Credit Corp (CCC) added a food aid tender for 9,600 tonnesof bagged flour for shipment to Iraq in April/May slots on Tuesday.

Fears of a long war with Iraq will likely keep the lid on sea trade forgrains and minerals in Asia, leaving panamax dry bulk rates for the USGulf to Japan unchanged at seven-year highs, Asia-based brokers said onTuesday.

They said the freight market would remain shaky in the short term as crudeoil had rallied from last week's four-month lows and shares and the dollarhad slipped, and as hopes for a quick end to a US-led attack on Iraqfaded.

Indications of modern panamax voyage rates for the benchmark US Gulf toJapan were barely changed from early last week at more than $30.00 a tonnefor shipment in April, said a broker with a major panamax grain cargooperator in Tokyo.

The level is the highest since October 1995 when an average fixture ratewas about $31.00 a tonne.

As the war unfolds, some vessels carrying wheat and barley from Europe orthe Black Sea to East Asia have been changing their route to the PanamaCanal from the Suez Canal in a bid to avoid the Middle East, the Tokyobroker said.

Voyage rates for the US Gulf to South Korea and Taiwan are normally about$0.50-$1.00 a tonne less than those for the US Gulf to Japan, reflectinghigher charges at Japanese ports.

In the period market, time-charter rates for the US Gulf to Japan wereindicated at $15,400 a day plus $350,000 ballast bonus (BB), against$14,500 a day plus $400,000 BB a week ago, a Seoul broker said.

He said period rates from South America to East Asia were also unchangedfrom early last week at about $17,000 a day.

There was talk that China had bought two to three cargoes of US soyabeansfor prompt shipment from the Pacific North-west to replace some of itsBrazilian soyabean cargoes following loading delays at some Brazilianports, another Tokyo broker said.

"We heard that it has been taking about two weeks to load soyabean cargoesat some southern ports in Brazil because of port congestion," he said.

Time-charter rates for the Pacific market were flat from last week atabout $12,500 a day, he said.

Asian soyameal buyers have covered April needs and may not rush into freshdeals in the hope that South America's galloping soya harvest could pushprices down and partially offset higher freight, South-east Asian traderssaid on Tuesday.

"April demand is covered, Chicago futures are coming down as the harvestprogresses, and there are still some uncertainties on the freight front --why should I buy so early unless it's very cheap?" asked oneSingapore-based regional trader.

"There is a strong feeling that South American prices will come down by atleast another $5 a tonne," said another trader.

"That is the level which buyers are aiming at for new contracts."Brazilian farmers had harvested 31 percent of their projected51-million-tonne soyabean crop by March 21 compared with 36 percent bysame time last year.

Argentina's crop is expected to rise to 34-35 million tonnes from lastyear's 30 million.

Feed ingredient buyers said suppliers were offering new crop low-proArgentine soyameal for April shipments at $200 a tonne C&F South-eastAsia, while they were quoting high-pro Brazilian soyameal at $215 a tonneC&F for the same month.

"We are still getting some Indian soyameal offers but prices are nowhereclose to the buying ideas," said one trader, adding that Indian soyamealwas offered at around $235 a tonne C&F to South-east Asia. Soyameal salesto some Asian nations are facing a slowdown.-Reuters