Breaking News-RTRS-Malaysia eyes Africa for oil palm expansion-report

KUALA LUMPUR, Dec 21 (Reuters) - Malaysia's state plantation agency will focus on growing oil palms in West Africa after scrapping plans to develop estates in Brazil last month, the Business Times reported on Monday.
The Federal Land Development Authority (FELDA), which owns 800,000 hectares of plantation land in Malaysia, will expand mostly in Cameroon and Liberia, its chairman Mohamad Yusof Noor was quoted as saying by the business daily.

Breaking News-RTRS-Indonesia Bakrie Sumatera: 2010 palm oil output at 430,000 T

JAKARTA, Dec 21 (Reuters) - Indonesian plantation firm PT Bakrie Sumatera Plantations Tbk expects palm oil output of around 430,000 tonnes in 2010, President Director Ambono Janurianto said on Monday.
The forecast is slightly higher than the firm's earlier forecast output of 420,000 tonnes for next year.

Breaking News-RTRS-UPDATE 1-Indonesia palm oil export tax at 3 pct in Jan -source

JAKARTA, Dec 21 (Reuters) - Indonesia will increase its palm oil export tax to 3 percent in January after holding it at zero for the past five months, said an industry source said on Monday.
A hike in the export tax was widely expected following a rise in prices. The 3 percent export tax is based on a reference price of $769.17 CIF Rotterdam, the source said.

Trader's Highlight

DJI-NEW YORK, Dec 21 (Reuters) - Optimism about the economic recovery on Monday encouraged investors to buy stocks and dump U.S. Treasuries, while gold prices fell as investors expected the dollar to remain firm in the beginning of the new year.

Speculation that the Federal Reserve may raise interest rates sooner than forecast drove the dollar to a six-week high against the yen and kept it near its strongest level against the euro in three months.

The Dow Jones industrial average <.DJI> ended up 85.25 points, or 0.83 percent, at 10,414.14, while the Standard & Poor's 500 Index <.SPX> gained 11.58 points, or 1.05 percent, to 1,114.05. The Nasdaq Composite Index <.IXIC> was up 25.97 points, or 1.17 percent, at 2,237.66.

NYMEX-NEW YORK, Dec 21 (Reuters) - U.S. crude futures ended lower on Monday, pressured by the stronger dollar as the front-month January crude contract moved toward expiration.

The market also eyed indications that OPEC will leave production targets unchanged at its meeting on Tuesday.

On the New York Mercantile Exchange, expiring January crude fell 89 cents, or 1.21 percent, to settle at $72.47 a barrel, trading from $71.99 to $74.32.

NYMEX February crude fell 70 cents, or 0.94 percent, to settle at $73.72 a barrel, trading from $73.17 to $75.24.

CBOT-SOYBEANS - January down 11 cents at $10.01 a bushel. Market closes at lowest level since Nov. 13 on pressure from drop in crude oil prices. Good growing weather in South America, firm dollar also contribute to weakness.

CBOT-SOYOIL - January down 0.05 cent at 38.28 cents per lb.Turned lower as crude oil fell.

FCPO-KUALA LUMPUR, Dec 21 (Reuters) - Malaysian crude palm oil futures dropped 2.5 percent on Monday, retreating from last week's six-and-a-half month highs on Friday's drop in U.S. soyoil prices as well as slowing exports.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange settled down 65 ringgit at 2,555 ringgit ($744.5) per tonne, its sharpest one-day drop since Oct. 2.The contract on Friday hit 2,628 ringgit, a level unseen since June. 2.

REGIONAL EQUITIES-BANGKOK, Dec 21 (Reuters) - Indonesia's stock index fell more
than 3 percent to its lowest in almost three weeks on Monday, leading declines in other major regional markets, with big caps such as Telkom Indonesia and Astra International leading the way.

Malaysia <.KLSE>, which was also closed on Friday, fell almost 1 percent on Monday to its lowest since Nov. 30, as palm plantation firms fell in line with crude palm oil futures, which dropped 2.2 percent on the day. [nSGE5BK03B] Among losers, IOI Corp slid 2.5 percent, Sime Darby was off 1.1 percent, Wilmar International fell 0.5 percent and Astra Agro lost 3.8 percent.

Singapore's index <.FTSTI> fell 0.6 percent, with top lender DBS Group Holdings off 1.6 percent, top telecoms firm Singapore Telecommunications dropping 2.3 percent and United Overseas Bank 0.7 percent lower.

CBOT Soyoil Daily: Continue to lose ground

Market continue to lose ground after violated the underline support at Usc39.00. Overall technical landscape remains weak. Currently, we are looking for the immediate downside support at Usc38.50-38.00 followed by Usc37.50. To the upside, resistance is pegged at Usc39.00-39.50.

NYMEX Crude Daily: Defended well

Market temporary has found some support around USD68 and rebounded to stay firm above USD70. However, more strength is needed to maintain the upside move. To the upside, we are looking at USD75-76 followed by USD78.00. Downside support is pegged at USD68.50.

FCPO Daily: Taking a break

Market took a little breathe after hit the recent high at 2628. Nevertheless, immediate technical outlook remains positive. As for now, we are looking for the immediate upside resistance at 2585-2598 (gap left over on 21/12/2009)followed by 2628 levels. While, downside support is lies at 2546-2539 (gap left over on 16/12/2009) followed by 2500-2480 levels.