Breaking News-RTRS-Argentine soy crop suffering the drought - reports

BUENOS AIRES, Jan 16 (Reuters) - Argentina's 2008/09 soy crop is deteriorating due to a drought affecting much of the growing region, the Agriculture Secretariat said on Friday in a weekly crop progress report.
Record soy production is expected this year as farmers seed more lands than ever with the oilseed. But if dry conditions persist, the bright outlook could darken for the world's No. 3 soybean exporter and its top supplier of soyoil and meal.
Conditions could be improved in Argentina's central agricultural region by rains expected over the weekend, a report from the Buenos Aires Grains Exchange said.

Breaking News-RTRS-Informa sees 2009 US corn acres at 82.7 mln -trade

CHICAGO, Jan 16 (Reuters) - Analytical firm Informa Economics estimated U.S. corn plantings for 2009 at 82.7 million acres and soybeans at 80.8 million, trade sources said on Friday.
The firm's projections compare with 86 million corn acres planted in the spring of 2008 and 75.7 million soybean acres, based on U.S. Agriculture Department data.
In December, Informa projected 2009 U.S. acres for corn at 82.288 million and soybeans at 81.455 million.

Breaking News-RTRS-Malaysia swaps palm for fertiliser with N.Korea-report

KUALA LUMPUR, Jan 18 (Reuters) - Malaysia has imported fertiliser components from North Korea in exchange for palm oil in a barter trade deal last month, a Malay language newspaper reported on Sunday.
The deal comes as the world's second largest producer of palm oil tries to further reduce its stock levels and slash a ballooning fertiliser import bill, Commodities Minister Peter Chin said. "We have already started the barter trade with North Korea and will extend this to Morocco, Jordan and Syria because these countries have the fertiliser components we need," Chin was quoted by Mingguan Malaysia newspaper as saying.

Trader's Highlight

DJI-NEW YORK, Jan 16 (Reuters) - U.S. stocks rose on Friday on strength in the energy sector and companies that hold up well in recessions, while reassuring comments from Britain's Barclays late in the day helped financials cut losses that had driven the market lower earlier.

The banking sector was in the spotlight throughout the session after a fresh $20 billion government capital injection for Bank of America revived worries about the fate of the sector.

The Dow Jones industrial average <.DJI> rose 68.73 points, or 0.84 percent, to 8,281.22. The Standard & Poor's 500 Index <.SPX> gained 6.38 points, or 0.76 percent, to 850.12. The Nasdaq Composite Index <.IXIC> was up 17.49 points, or 1.16
percent, at 1,529.33.

Markets will be closed on Monday for the Martin Luther King Jr. Day holiday, a day before the inauguration of President-elect Barack Obama.

NYMEX-NEW YORK, Jan 16 (Reuters) - U.S. crude futures ended higher in volatile trading on Friday as traders covered short positions before the February contract expires on Tuesday.

Prices rose ahead of the long holiday weekend. Floor trading will be closed on Monday, the Martin Luther King holiday, though electronic trading will proceed as usual.

On the New York Mercantile Exchange, February crude settled up $1.11, or 3.14 percent, at $36.51, trading from $34.18 to $36.73. That was inside Thursday's range of $33.20, the lowest since crude hit $32.40 on Dec. 19, and $37.99.

CBOT-SOYBEANS - March up 25-1/2 at $10.20 per bushel.

Persistent hot and dry weather in Argentina that is stressing the soy and corn crops boosted prices in addition to continued active export sales of U.S. soy, especially to China, the world's largest soybean buyer.

CBOT-SOYOIL - March up 0.19 cent at 34.59 cents per lb.

Spillover support from soaring soy amid drought in Argentina, the world's largest soyoil exporter.

FCPO-KUALA LUMPUR, Jan 16 (Reuters) - Malaysian crude palm oil futures rose 1.6 percent on Friday as fears of lower South American soyoil production gripped vegetable oil markets, although sharp overnight falls in crude curbed gains.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 28 ringgit at 1,833 ringgit ($512.4) after initially going as high as 1,840 ringgit.

Other traded months ranged between a 39 ringgit rise and a 53 ringgit drop <0#KPO:>. Overall trade stood at 12,644 lots of 25 tonnes each.

REGIONAL EQUITIES-A rise in Wall Street stock futures after Washington pumped $20 billion into Bank of America buoyed Asian sentiment and encouraged investors to put money into equities, even though dismal economic data has made market players wary again.

Singapore's Straits Times index <.FTSTI> gained 1.6 percent, recovering from a 3.4 percent fall on Thursday, with DBS Group rising 3.4 percent, and United-Overseas Bank and Oversea-Chinese Banking both up 3.1 percent.

In Kuala Lumpur, the index <.KLSE> slid 0.11 percent, extending losses into a fourth day ahead of a key by-election at the weekend.

FCPO Weekly: Maintain sideways to Higher

Market tested the 2000 mark but not manage to hold. However, 1800 mark was defended well. We maintain our sideways to higher view in near term market. We are now looking for the upside resistance at 2058. While, downside support is pegged at 1750-1720.

DJI Weekly: Crucial support at 8000 mark

Market tested 8000 mark but manage to hold on above it. However, failure to hold at 8000 mark again may see bear taking place more aggressively. Resistance is now looking at 9065-9088. Downside support is pegged at 7882-7449 level.

KLSE Weekly: Try to hold ground

Market is trying to holding ground after filled up the downside gap at 901-897. We maintain our sideways to higher view in near term market. Currently, we continue to look for the upside resistance at 936. Downside support is pegged at 868-862.

FKLI Weekly: Remains sideways to higher posture

Market covered the downside gap at 903.5-901 and close weak. Nevertheless, market still stick to its sideways to higher posture. As for now, we are looking for the resistance at 942.5. Downside support is pegged at 865-860.