Breaking News-RTRS-INTERVIEW-Malaysia's swelling palm stocks to ease in Dec

KUALA LUMPUR, Nov 20 (Reuters) - Malaysia may see a decline in record stocks of palm oil from December as bad weather hits output and the government pushes forward with its biodiesel and replanting plans, an industry regulator said on Thursday.

Better food demand from top importers China, India and Pakistan next year could accelerate the decline in stocks in the world's second largest producer of the vegetable oil, Malaysian Palm Oil Board Chairman Sabri Ahmad said.

December would see 100,000 tonnes less palm oil from November as Sabah state on Borneo island and the eastern peninsular Malaysia, which account for 50 percent of total production, will be worst affected by the floods.

The government is likely to carry out its plans on biodiesel and replanting over a year in 2009 rather than taking two years or more, Sabri said.

"The biodiesel association has agreed to buy up 500,000 tonnes of crude palm oil in 2009," Sabri said.

Breaking News-RTRS-IMF approves $2.1 billion loan for Iceland

WASHINGTON, Nov 19 (Reuters) - The International Monetary Fund said on Wednesday its board approved a $2.1 billion loan for Iceland to try to stabilize what the fund called a "banking crisis of extraordinary proportions."
The two-year stand-by arrangement is structured so that Iceland can immediately draw about $827 million, with the rest in eight installments of about $155 million, subject to quarterly reviews.

Breaking News-RTRS-UPDATE 1-Sime enters China's palm oil refinery business

KUALA LUMPUR, Nov 19 (Reuters) - Malaysian conglomerate Sime Darby Bhd said it has teamed up with a Chinese firm to enter the palm oil refining and sales business in China.
Sime is expected to take a majority stake in a joint venture firm, along with Dongguan Sinograin Oils & Grains Co Ltd, a Chinese government-linked company.

Ttrader's Highlight

DJI-NEW YORK, Nov 19 (Reuters) - U.S. and European shares ended at five-and-a-half-year closing lows on Wednesday as a record drop in U.S. consumer prices and more dismal housing data stoked recession fears, driving a flight to safety.

Doubts about the prospect of a U.S. auto industry rescue added to America's weak economic outlook, further weighing on stocks and helping push the dollar down against the yen.

Markets are pricing in further rate cuts, with the U.S. Federal Reserve seen cutting another 50 basis points in December and figures derived from Eonia rates fully pricing in 75 basis points of European Central Bank cuts next month.

The Dow Jones industrial average <.DJI> closed down 427.47 points, or 5.07 percent, at 7,997.28. The Standard & Poor's 500 Index <.SPX> was down 52.54 points, or 6.12 percent, at 806.58. The Nasdaq Composite Index <.IXIC> was down 96.85 points, or 6.53 percent, at 1,386.42.

NYMEX-NEW YORK, Nov 19 (Reuters) - U.S. crude futures ended lower on Wednesday as weekly inventory data showed a larger-than-expected stock increase, offsetting an overall drawdown in distillate supplies.

On the New York Mercantile Exchange, December crude , which expires on Thursday, settled down 77 cents, or 1.42 percent, at $53.62 a barrel, the lowest settlement prices closed at $51.13 on Jan. 22, 2007.

CBOT-SOYBEANS - January down 5 cents at $8.97. Pressure from falling stock market but underpinned by dry weather in Argentina, the world's third largest soy exporter.

Soy continues to find support from tightening U.S. stocks, but gains limited by concern about demand during a global recession.

CBOT-SOYOIL - December down 0.31 cent at 31.97 cents per lb. Early gains clipped as stock market turned down.

FCPO-KUALA LUMPUR, Nov 19 (Reuters) - Malaysian palm oil futures ended 3.1 percent higher on Wednesday, after India hiked import tariffs for rival soyoil the prior day, heightening hopes for more demand although traders said palm oil was next for a rise.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange settled up 44 ringgit at 1,480 ringgit ($410) per tonne. Other traded months on Bursa Malaysia <0#KPO:> rose between 30 and 58 ringgit. Trading volume nearly doubled to 18,518 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Nov 19 (Reuters) - Most Southeast Asian stocks fell
on Wednesday as investors, spooked by weak corporate profit outlooks, sold financials and blue chips such as Singapore's DBS, Indonesia's Bank Rakyat and Thailand's top oil firm PTT.

Singapore's benchmark Straits Times Index <.FTSTI> closed down 1.59 percent to its lowest level since October 29.Indonesia's main stock index <.JKSE> drifted 0.8 percent lower at the close after earlier touching 1,159.96 points.Malaysia's main stock index <.KLSE> fell for a second day, down 0.62 percent, as palm plantation firm Sime Darby lost 0.78 percent and IOI Corp dipped 0.65 percent,despite a 2.2 perecent rise in Malaysian palm oil futures.

DJI Daily: plunged to the lowest in 5 1/2 year

DJI tumbles with more than 5% losses and again 8000 mark was unable to defend. Chart wise look ugly with a long black candle printed. As for now, support remains at 7882-7965 while resistance is at 8680-8684.

FKLI Daily: in cautious mode

Market is in cautious mode following prices extended its losing streak. A break below the immediate support at 863 may see more downside room and next support is at the recent low 803.5 level. For upside, immediate resistance is at 891-895.5 followed by 900-910.

KLSE Daily: losing ground

Market looks tiring to hold ground following prices continue to end weak. We look at the immediate support at 868-867 followed by 848-850. While, upside resistance is at 889-896 followed by 905-913 (gap left over since 5/11/2008).

FCPO Daily: trending sideways

Market continue to trend sideways with immediate support is at 1400-1390 followed by 1331. While, immediate resistance is at 1505-1520 followed by 1563-1571 level.