Breaking News-FACTBOX-New economic model to boost Malaysia's palm oil sector

KUALA LUMPUR, March 30 (Reuters) - Malaysia's palm oil industry could contribute 7.6 percent of real GDP by 2020, outstripping the electronics sector, estimates and recommendations from the National Economic Advisory Council show.
This makes palm oil a key sector that will drive the Southeast Asian country's New Economic Model, which Prime Minister Najib Razak unveiled on Tuesday.

Breaking News-RTRS-Oil World hikes forecast of Argentine soybean crop

HAMBURG, March 30 (Reuters) - Argentina's 2010 soybean crop is likely to rise to 53.3 million tonnes from 32 million tonnes in 2009, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
This was up by 1.3 million tonnes from Oil World's previous estimate on March 2.
It also raised its forecast of Brazil's 2010 soybean crop to 66.0 million tonnes, a more moderate rise of 0.5 million tonnes from its previous forecast and up from 57.5 million tonnes last year.

Breaking News-RTRS-China Dalian soyoil up on import curb talk -trade

BEIJING, March 30 (Reuters) - China's Dalian soyoil and palmoil contracts <0#DBY:> <0#DCP:> traded higher on Tuesday, supported by market talk that the government may take measures to restrict imports of soyoil, traders said.
The commerce ministry has asked 16 edible oil companies for an emergency meeting, triggering speculation that the government might take steps to restrict imports because it has a surplus of supplies at home, the Dalian Commodity Exchange said in a short notice to media.

Trader's Highlight

DJI-NEW YORK, March 30 (Reuters) - U.S. stocks rose in a slow session on Tuesday on data showing more stabilization in the economy, while Apple Inc rallied on a report that it was developing a new iPhone.

With the S&P 500 <.SPX> now up 73.4 percent from the March 2009 bottom and on track for a fourth straight quarterly gain, investors chose to lock in profits, with financials taking the brunt of the selling.

The Dow Jones industrial average <.DJI> edged up 11.56 points, or 0.11 percent, to end at 10,907.42, not far below the 11,000 mark. The Standard & Poor's 500 Index <.SPX> added just 0.05 of a point, or 0.00 percent, to 1,173.27. The Nasdaq Composite Index <.IXIC> rose 6.33 points, or 0.26 percent, to close at 2,410.69.

NYMEX-NEW YORK, March 30 (Reuters) - U.S. crude oil futures rose slightly in post-settlement trading on Tuesday, after industry data showed a much smaller-than-expected increase in crude stocks last week.

Heating oil and gasoline futures edged up, as data from the American Petroleum Institute showed that distillate and gasoline supplies fell, but by less than analysts had forecast.

On the New York Mercantile Exchange at 5 p.m. EDT (2100 GMT), May crude was up 44 cents at $82.61 a barrel. It had settled up 20 cents, or 0.24 percent, at $82.37, trading from $81.77 to $82.74.

CBOT-CHICAGO, March 30 (Reuters) - Chicago Board of Trade grains and soy complex close on Tuesday.

CBOT-SOYBEANS - May up 6-1/2 cents at $9.74 per bushel. Nearby May leads the way up on shrinking U.S. soy supplies and concern about labor unrest in Argentina. May/November widened 5-1/2 cents and May/November closed at 42-1/2 cents, premium May.

CBOT-SOYOIL - May down 0.60 cent at 38.67 cents per lb. Pressured by talk that China may take steps to restrict imports on soyoil.

FCPO-KUALA LUMPUR, March 30 (Reuters) - Malaysian crude palm oil futures rose 1 percent on Tuesday, recovering from seven-week lows on stronger crude oil prices.
Traders said the palm oil market, which has lost 4.4 percent so far this year, could rebound as it has been oversold for many days.

The benchmark June crude palm oil contract on the Bursa Malaysia Derivatives Exchange gained 25 ringgit to settle at 2,545 ringgit ($779.5) after going as low as 2,501 ringgit -- a level unseen since Feb 5. Overall traded volume surged to 19,557 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, March 30 (Reuters) - Thai stocks rose on Tuesday, turning round after three days of losses as investors bought energy shares as oil firmed, but Malaysia ended flat, shrugging off the prime minister's promise of economic reforms.

Other major markets in the region were little changed, with Singapore edging up 0.15 percent and Indonesia inching up 0.13 percent. Bucking the trend, Vietnam <.VNI> fell nearly 1 percent.

Malaysia's index <.KLSE> was flat even though Prime Minister Najib Razak unveiled long-promised economic reforms on Tuesday, with plans to reduce race-based programmes in what he described as a "bold transformation". A lack of detail prompted scepticism.

In Singapore, Singapore Telecoms fell 0.3 percent while Wilmar International rose 1.5 percent.

CBOT Soyoil Daily: Weaken

Market momentum weaken further following prices violated the immediate downside support at Usc39.00. Thus, market may move sideways to lower in near term. To the upside resistance is pegged at USc40.00 while downside support is lies at USc38.50-38.00.

FKLI Daily: Facing some resistance at 1328 levels

Market looks is facing some resistance at 1328 levels. Violation of it may lift market to challenge the recent high at 1337 levels. To the downside, support is pegged at 1310-1300.

FCPO Daily: 2500 levels defended

Market defended at 2500 levels and rebounded after drop for straight two days. However, immediate technical landscape remains weak. Thus, market looks may continue to move sideways to lower in near term. As for now, we continue to look for the upside resistance at 2595-2600. While, immediate downside support is lies at 2500 followed by 2470-2462 (gap left over since 3/2/2010).

Breaking News-RTRS-MALAYSIA PM NAJIB SAYS TIME TO REVIEW IMPLEMENTATION OF AFFIRMATIVE ACTION POLICIES

March 30 (Reuters) -: * Malaysia pm najib says time to review implementation of affirmative action policies * Malaysia pm najib says social support to be based on needs not race * Malaysia pm najib says employees provident fund to be allowed to invest more assets offshore * Malaysia pm najib says epf overseas investment to rise significantly from 6pct of total * Malaysia to list stakes in two petronas units -pm

Breaking News-RTRS-UPDATE 1-Malaysia PM unveils economic reforms

KUALA LUMPUR, March 30 (Reuters) - Malaysia's prime minister on Tuesday unveiled long-promised economic reforms that he said would make this Southeast Asian country a developed nation by 2020 but he provided few clues as to how he would get there.
Najib Razak's "New Economic Model" said Malaysia would grow by 6.5 percent a year from 2011 to 2020 so as to be able to join the club of developed nations. He pledged to cut the budget deficit and introduce new taxes to do so.

Breaking News-RTRS-Unilever: No plans to cut palm oil supply ties with IOI

KUALA LUMPUR, March 29 (Reuters) - Consumer goods giant Unilever said it would not cancel palm oil supply contracts with Malaysia's IOI and that it was confident the planter would address concerns over logging forests raised by a green group.
IOI Corp, Malaysia's No. 2 planter, had dismissed the report by Friends of the Earth that it cleared rainforests on Borneo island to expand, saying the allegations were inaccurate.

Breaking News-RTRS-Malaysian palm prices to rise, output lower-Mistry

LONDON, March 29 (Reuters) - Malaysian crude palm oil futures prices look set to rise, possibly by more than 25 percent, with a second consecutive decline in production anticipated this year, a top analyst said on Monday.

Breaking News-RPT-Grains Week Ahead - USDA data to set market tone

CHICAGO, March 28 (Reuters) - The U.S. government on Wednesday will issue its first survey-based estimates of how many acres of corn and soybeans farmers will plant this spring. Traders say there will be more of both than in 2009. In fact, they expect corn acres to be the second-largest in 65 years, with a record high for soy.
The report could signal prospects of back-to-back seasons of mammoth crops from theworld's top grower and exporter of corn and soybeans, and provide key trading signals not only to the Chicago Board of Trade but grain markets across the globe.

Breaking News-RTRS-ANALYSIS-Argentine strike keeps CBOT soy spread on the boil

CHICAGO, March 29 (Reuters) - The combination of an expanding port strike in Argentina and tight supplies of old-crop U.S. soybeans looks set to keep Chicago Board of Trade soybean and soymeal spreads on the boil this week.
The spread, or price difference, between the nearby May CBOT soybean futures contract and the deferred November contract settled Monday at 42 cents, premium May, its widest point in nearly three months.

FKLI Daily: May challenge recent high at 1337 levels.

Market continue to inch higher and looks may want to challenge the recent high at 1337 levels. To the downside, support is pegged at 1310-1300.

CBOT Soyoil Daily: in Consolidation phase

Market still in consolidation phase following prices found some immediate support at USc39.00. Upside resistance is pegged at USc40.30-40.60 followed by USc41.00

Trader's Highlight

DJI-NEW YORK, March 29 (Reuters) - U.S. stocks rose on Monday as miners and energy companies advanced on dollar weakness and investors bought recent high fliers as the quarter's end approached.

The dollar's decline boosted commodities prices, including crude oil. Exxon Mobil Corp was up 1.1 percent to $67.30 and the S&P energy index <.GSPE> rose 1.8 percent.

The Dow Jones industrial average <.DJI> rose 45.50 points, or 0.42 percent, to 10,895.86 -- it's highest close since September 2008. The Standard & Poor's 500 Index <.SPX> climbed 6.63 points, or 0.57 percent, to 1,173.22. The Nasdaq Composite
Index <.IXIC> jumped 9.23 points, or 0.39 percent, to 2,404.36.

NYMEX-NEW YORK, March 29 (Reuters) - U.S. crude futures ended higher on Monday for the first time in four sessions, supported by a weaker dollar, higher equity prices and data showing consumer spending rising for the fifth straight month.

Some analysts also cited geopolitical worries arising from a suicide bombing that killed at least 38 people on packed Moscow metro trains on Monday.

On the New York Mercantile Exchange, May crude closed up $2.17, or 2.71 percent, at $82.17 a barrel, trading from $80.18 to $82.78. The day's percentage gain was the highest for a day since prices ended up 3.89 percent Feb. 16.

CBOT-CHICAGO, March 29 (Reuters) - Chicago Board of Trade grains and soy complex close on Monday.

CBOT-SOYBEANS - May up 15-1/2 cents at $9.67-1/2 per bushel. Market climbs on weak dollar, higher crude oil and concerns about ability of Argentina to ship soybeans due to spreading labor protests.


CBOT-SOYOIL - May up 0.32 cent at 39.27 cents per lb. Firm crude oil, higher soy and weak dollar combine to lift soyoil futures.

FCPO-KUALA LUMPUR, March 29 (Reuters) - Malaysia palm oil futures fell to seven-week lows on Monday due to the stronger ringgit currency against the dollar and expectations of weak export growth this month.

Palm oil futures have lost 5.4 percent so far this year on expectations of a bumper South American soybean crop and volatility in foreign exchange markets.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange settled down 14 ringgit, or 0.55 percent, at 2,520 ringgit ($762.5) after going as low as 2,510 ringgit -- a level not seen since Feb. 8.

REGIONAL EQUITIES-BANGKOK, March 29 (Reuters) - Indonesia's stock market ended lower on Monday as bank shares fell prey to profit-taking, while Thai stocks fell for a third session as worries grew over anti-government protests in the capital.

The region overall was mixed, with Singapore and Malaysia posting small gains while the Philippines and Vietnam were flat.

Singapore's index <.FTSTI> rose for a third day, adding 0.8 percent, led by big caps and banking stocks. Singapore Telecoms rose 2.2 percent, Oversea Chinese Banking Corp gained 1.3 percent and United Overseas Bank climbed 1 percent.

In Kuala Lumpur, the index extended its gains into a fifth session, finishing 0.3 percent higher, led by Malayan Banking and Axiata Group , which rose about 1 percent each.

NYMEX Crude Daily: More strength is still needed

Market rebounded sharply to draw a long white candle had improved a little the immediate technical outlook. However, more strength is still needed in order to change the current outlook to look more positively. Thus, market may consolidate and move in the range of upside at USD83.16-83.95 to the downside at USD78.57.

FCPO Daily: 2500 able to defend?

Immediate technical landscape dampened further following market continue to lose ground and fully cover the downside gap left over at 2528-2523. Thus, market looks may continue to move sideways to lower in near term. As for now, we continue to look for the upside resistance at 2595-2600. While, immediate downside support is lies at 2500 followed by 2470-2462 (gap left over since 3/2/2010).

Breaking News-RTRS-Malaysian palm oil firm denies clearing rainforests

KUALA LUMPUR, March 26 (Reuters) - Malaysia's second-largest planter IOI Corp dismissed claims by a green group that it cleared rainforests on Borneo island to expand oil palm estates, saying the report was inaccurate.
IOI Corp said on Friday it conducted its own investigations and held a dialogue with Friends of the Earth group, which published a report last week looking at how the planter was expanding estates on the Indonesian side of the island.

Breaking News - RTRS-PREVIEW-Corn, wheat stockpiles to rise; soy seen shrinking

CHICAGO, March 25 (Reuters) - U.S. corn supplies were
expected to reach their highest level in more than 20 years as
a bumper harvest last autumn led to growing stockpiles despite
rising demand for the crop.
Soybean supplies were expected to fall in the U.S.
Agriculture Department's quarterly stocks report, which will be
issued on March 31, due to aggressive buying by China on the
export market but wheat stocks were seen at a 10-year high as
overseas buyers were looking to other countries to satisfy
demand.

Breaking News-RTRS-Argentine police close access to key grains port

BUENOS AIRES, March 26 (Reuters) - Argentine police have closed a road leading to one of Argentina's main grains ports after protests by dockworkers, sources said on Friday.
Police closed off access to the San Martin port, one of the country's leading grains ports, following days of protests by workers who have halted the loading and unloading of ships to demand higher wages.
Several terminals at San Martin were not receiving grains because a road leading to the port was closed, sources said.

Trader's Highlight

DJI-NEW YORK, March 26 (Reuters) - The Dow and S&P ended flat on Friday, giving back earlier gains after the sinking of a South Korean naval ship, while tech shares' weakness kept the Nasdaq in slightly negative territory.

Stocks initially rose after European Union leaders said they had agreed on a standby aid package for Greece, and after better-than-expected March consumer sentiment data.

The Dow Jones industrial average <.DJI> rose 9.15 points, or 0.08 percent, to end at 10,850.36. The Standard & Poor's 500 Index <.SPX> inched up just 0.86 point, or 0.07 percent, to 1,166.59. But the Nasdaq Composite Index <.IXIC> slipped2.28 points, or 0.10 percent, to close at 2,395.13.

NYMEX-NEW YORK, March 26 (Reuters) - U.S. crude oil futures ended lower for a third day in row on Friday as downbeat economic data overshadowed a steady tone in consumer sentiment and news of an agreement to help debt-strapped Greece.

Wall Street fell back, on geopolitical worries after the sinking of a South Korean naval ship and a drop in tech bellwether Oracle [.N].

On the New York Mercantile Exchange, May crude settled down 53 cents, or 0.66 percent, at $80 a barrel, trading from $79.54 to $81.46.

CBOT-CHICAGO, March 26 (Reuters) - Chicago Board of Trade grains and soy complex close on Friday.

CBOT-SOYBEANS - May up 9-1/2 cents at $9.52 per bushel. Support from short-covering, bull-spreading, tightening U.S. soy supplies and news Argentine police closed roads to San Martin grains port after worker protests.

CBOT-SOYOIL - May up 0.25 cent at 38.95 cents per lb. Higher soy and weak dollar combine to lift soyoil futures. Weakness in crude oil weighs.

FCPO-JAKARTA, March 26 (Reuters) - Malaysian palm oil futures fell 1.59 percent to a one-week low on Friday on the strength in the ringgit and as concerns over a dry weather spell leading to tight supplies eased.

The benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange closed down 41 ringgit, or 1.59 percent, at 2,534 ringgit ($767) per tonne. Overall trade volume was 14,711 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 26 (Reuters) - Most Southeast Asian stock markets ended slightly higher on Friday after investors bought big-cap stocks as hopes grew of a debt bail-out for Greece.

Investors took their lead from U.S. stock futures, which pointed to a higher start on Friday, dealers said. At 0948 GMT, the futures <.DJM0> were up 0.24 percent.

In Singapore, the Straits Times Index <.FTSTI> finished 0.6 percent higher although the city state's stronger-than-expected factory output in February fuelled expectations of policy tightening next month. [ID:nSGE62P052]

Among actively traded stocks, Straits Asia Resources was up 3.8 percent and developer CapitaLand gained 2.3 percent.

Malaysia's index <.KLSE> was up 0.2 percent, with gaming group Genting rising 1.7 percent and palm plantation firm Sime Darby up 0.8 percent.

One weak spot was Telekom Malaysia , which fell 1.4 percent after Hwang DBS Vickers downgraded the stock to "hold" after a recent run-up in the share price.

NYMEX Crude Weekly: Searching for direction

Market looks still searching for a clearer direction as market remains in consolidation phase. Thus, upside resistance is pegged at USD83.95. Immediate downside support is looking at USD75.00 followed by the USD68.59.

FKLI Weekly: Defended well

Bulls defended well following prices managed to rebound and recover to close near to the weekly high. Market still remains its upward posture and looks likely to challenge its recent high 1337-1348 (gap left since 9/3/2008). To the downside, support is pegged at 1275-1270 followed by 1250.

FCPO Weekly: Limited upside

Market momentum weakened further following a double top formation. Thus, we continue to look for the upside resistance at 2722-2726. While, downside support is lies at 2528-2538 (left over gap since 14/2/2010) followed by 2450-2400.

Breaking News-RTRS-UPDATE 2-Cargill warns Indonesian planter, expansion seen curbed

JAKARTA, March 25 (Reuters) - Agribusiness giant Cargill Inc [CARG.UL] has threatened to delist Indonesian planter Sinar Mas as a palm oil supplier over allegations of illegal logging -- a move that may curb future industry expansion.
Cargill may join top palm oil buyers Unilever and Nestle who have already said they would stop buying palm oil from Sinar Mas after Greenpeace released a report showing the planter cleared rainforests.

Trader's Highlight

DJI-NEW YORK, March 25 (Reuters) - U.S. stocks ended flat on Thursday, dropping off earlier highs as a weak U.S. bond auction and global debt concerns continued to weigh on investor sentiment.

Indexes advanced for most of the session, with the Dow and S&P hitting fresh 18 month highs, but their gains mostly disappeared after the auction of seven-year notes and comments from European Central Bank President Jean-Claude Trichet on issues surrounding Greece's sovereign debt.

The Dow Jones industrial average <.DJI> was up 5.06 points, or 0.05 percent, to end at 10,841.21. But the Standard & Poor's 500 Index <.SPX> was down 1.99 points, or 0.17 percent, at 1,165.73. And the Nasdaq Composite Index <.IXIC> was down 1.35 points, or 0.06 percent, at 2,397.41.

NYMEX-NEW YORK, March 25 (Reuters) - U.S. crude futures slid narrowly lower on Thursday, as the euro skidded late in the session against the dollar, encouraging selling in energy futures.

Gasoline and heating oil futures also fell back with crude in choppy trading, ending slightly lower.

On the New York Mercantile Exchange, May crude settled down 8 cents, or 0.1 percent, at $80.53 a barrel, trading from $80.20 to $81.40.

CBOT-CHICAGO, March 25 (Reuters) - Chicago Board of Trade grains and soy complex close on Thursday.

CBOT-SOYBEANS - May down 17-1/2 cents at $9.42-1/2 per bushel. Turned lower in sympathy with corn and wheat; lack of follow-through on early rally. Export sales disappoint. May broke support at 50-day moving average of $9.53, touching of sell-stops and driving the contract below all key averages by the close.

CBOT-SOYOIL - May down 0.38 cent at 38.70 cents per lb. Following soybeans lower. USDA reported export sales of U.S. soyoil last week at 13,800 tonnes, within estimates for 5,000 to 15,000 tonnes.

FCPO-JAKARTA, March 25 (Reuters) - Malaysian palm oil futures closed higher on Thursday on firm crude oil and expectations that good exports would help reduce palm oil stock in the country.

The benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange closed up 15 ringgit or 0.59 percent at 2,575 per tonne. Overall trade volume was 10,656 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 25 (Reuters) - Most Southeast Asian stock markets posted small gains on Thursday as investors bought banks, expecting their earnings to recover along with the economy, but a downgrade of Portugal's sovereign rating made for cautious trade.

Markets finished off the day's highs in a volatile session, with Singapore <.FTSTI> up 0.07 percent, Malaysia <.KLSE> adding 0.23 percent, Indonesia <.JKSE> 0.88 percent higher and the Philippines <.PSI> up 0.14 percent.

In Kuala Lumpur, financial firm CIMB Group rose 1.6 percent and AMMB Holding gained 0.6 percent. In Bangkok, Kasikornbank rose 1.3 percent and Krung Thai Bank was up 0.9 percent.

In Singapore, United Overseas Bank was up 0.2 percent, erasing some of its early gain, while DBS Group and Oversea-Chinese Banking Corp ended in negative territory after rising earlier.

FCPO Daily: Range trading

Market continue to move in tight rangy mode and trade in between 2600 to 2528 levels. Thus, a break out of the either one may provide a clearer direction to the market. As for now, immediate upside resistance is pegged at 2600 followed by 2630-2640. While, downside support is pegged at 2545 followed by 2528-2523 (left over gap since 8/2/2010).

Breaking News-RTRS-Strike continues at key Argentine grains port

BUENOS AIRES, March 24 (Reuters) - Argentine dockworkers
continued a strike for a second day on Wednesday at two terminals
in one of the country's main grain ports, a union leader told
Reuters.
The workers have halted the loading and unloading of ships to
demand higher wages. Talk about the strike has affected soy prices
in Chicago.
Wednesday is a holiday in Argentina, and grains markets are
closed. However, dock and ports workers would normally continue
around the clock even on a holiday, the union leader said.

Breaking News-RTRS-UPDATE 1-Rapeseed output to fall by half in China drought areas

BEIJING, March 24 (Reuters) - The most serious drought in decades in China's southern provinces of Yunnan and Guizhou is expected to cut their rapeseed output by 500,000 tonnes, or about half of last year's total output, an official think-tank reported on Wednesday.
In 2009, the two areas produced 1 million tonnes of the oilseed, used to produce edible oil and feed ingredients, accounting for 7.3 percent of China's total output, said the China National Grain and Oils Information Centre (CNGOIC).

Trader's Highlight

DJI-NEW YORK, March 24 (Reuters) - U.S. stocks fell on Wednesday as Portugal's credit rating downgrade and a weak Treasury note auction stirred concerns about sovereign debt.

Major indexes eased a day after hitting 18-month highs, with losses across most sectors on light volume. Worries centered on countries' ability to pay their debt, bolstering the dollar and hurting commodity-related stocks.

The Dow Jones industrial average <.DJI> fell 52.68 points, or 0.48 percent, to close at 10,836.15. The Standard & Poor's 500 Index <.SPX> slipped 6.45 points, or 0.55 percent, to end at 1,167.72. The Nasdaq Composite Index <.IXIC> dropped 16.48 points, or 0.68 percent, to close at 2,398.76.

NYMEX-NEW YORK, March 24 (Reuters) - U.S. crude oil futures ended sharply lower on Wednesday on data showing a larger-than-expected increase in domestic crude stocks last week and as the dollar rallied on euro zone debt worries.

On the New York Mercantile Exchange May crude settled down $1.30, or 1.6 percent, at $80.61 a barrel, trading from $79.88 to $81.64.

CBOT-CHICAGO, March 24 (Reuters) - Chicago Board of Trade grains and soy complex close on Wednesday.

CBOT-SOYBEANS - May down 8 cents at $9.60 per bushel. Strong dollar, lower crude oil combine to weigh on soybean futures but market ended above the day's lows as May held above support at 50 day moving average at $9.53. Argentine dockworkers continued a strike for a second day on Wednesday at two terminals in one of the country's main grain ports.

CBOT-SOYOIL - May down 0.46 cent at 39.08 cents per lb. Pressure from lower soybeans, firm dollar and drop in crude oil.

FCPO-JAKARTA, March 24 (Reuters) - Malaysian palm oil futures ended down 1.2 percent on Wednesday, under pressure as weak crude oil and soyoil weighed on the market.

Concerns about lower exports for the full month of March due to the strengthening of the ringgit against the dollar, also put pressure on the prices, traders said.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange settled down 31 ringgit, or 1.2 percent, to 2,560 ringgit per tonne.
Overall trade volume stood at 13,662 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 24 (Reuters) - Indonesian stocks climbed to their highest in nearly a week on Wednesday as strong bank results induced buying in the sector, while Thailand hit a 21-month high as renewed tax breaks helped property shares. Markets in the region were mostly firmer, and the Philippines <.PSI> surged to a two-year high.

But Singapore <.FTSTI> lost 0.7 percent as investors took profits across the board, a Singapore-based dealer said, with Singapore Exchange , Asia's second-largest listed bourse, down 0.5 percent and Oversea-Chinese Banking Corp , Singapore's No. 2 lender, down 0.3 percent.

In Kuala Lumpur, the index <.KLSE> was up 0.35 percent. Among actively traded stocks, financial CIMB Group was up 1.9 percent and Malayan Bank was up 0.5 percent.

NYMEX Crude Daily: Losing upward momentum

Market is losing its upward momentum following a potential formation of head and shoulder. As for now, we are looking for the upside resistance at USD83.00 to 83.16. While, downside support is pegged at USD78.57.

FCPO Daily: Facing resistance at 2600 levels

Market is still facing resistance at 2600 levels and looks may extend its consolidation phase in near term with immediate upside resistance is pegged at 2600 followed by 2630-2640. While, downside support is lies at 2545 followed by 2528-2523 (left over gap since 8/2/2010).

FKLI Daily: Likely to extend its consolidation phase

Market looks likely to extend its consolidation phase in near term. As for now, we are looking for the immediate upside resistance at 1320 followed by 1328-1337 levels. While, immediate downside support is lies at 1287.5.

Breaking News - RTRS-UPDATE 1-Neste Oil wants key palm supplier to probe forest claim

SINGAPORE/KUALA LUMPUR, March 24 (Reuters) - Finnish refiner Neste Oil wants a major palm oil supplier for its biofuel plants to investigate accusations the Malaysian firm illegally cleared forests on Borneo island.
Neste's call comes as environmentalists successfully pressured top European palm oil buyers such as Unilever and Nestle to cancel contracts with planters who they say are fuelling global warning by felling forests.
A senior Neste official said the firm will conduct its own investigations into Malaysia's IOI Corp after Friends of the Earth published a report last week that looked into how IOI was expanding estates in Indonesian part of Borneo.

Breaking News - RTRS-MALAYSIA SAYS TO ROLL OUT BIODIESEL MANDATE IN PHASES STARTING JUNE 2011

CAREY ISLAND, Malaysia, March 24 (Reuters) - Malaysia will roll out its biodiesel mandate in phases beginning June 2011, commodities minister Bernard Dompok said.
"To ensure that this programme is a success, the government will bear the cost of constructing six petroleum depots at a cost of 43.1 million ringgit," Dompok said in a statement.

Breaking News - RTRS-UPDATE 1-China sees 4.56 mln T soy imports in March -MOFCOM

BEIJING, March 23 (Reuters) - China's Commerce Ministry said it expects soy imports to total 4.56 million tonnes in March, the third-highest monthly quantity ever and exceeding an earlier forecast of 3.3 million tonnes.
The figure was slightly lower than December's record 4.78 million tonnes.

Breaking News-RTRS-Biofuels cut Colombian palm oil exports -Oil World

HAMBURG, March 23 (Reuters) - Colombia's rising production of biodiesel is likely to slash the country's palm oil exports in 2010 following a long period of export expansion, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Colombia's 2010 calendar year palm oil exports are forecast by Oil World to fall to 60,000 tonnes from 214,000 tonnes in 2009, opening the way for larger sales by rivals Malaysia and Indonesia.

Breaking News-RTRS-Mid-April is earliest to renew US biodiesel credit

WASHINGTON, March 22 (Reuters) - Congress is unlikely to revive the $1 a gallon biodiesel tax credit before mid-April the earliest, till after a two-week recess, U.S. biofuels officials said on Monday.
The credit expired at the end of 2009 and virtually shut down the industry, says the American Soybean Association. Roughly 11 percent of U.S. soybean oil is used in making the biofuel, which is a bolster for soybean prices.

Breaking News - RTRS-Strike hits Argentina's key grains port

BUENOS AIRES, March 23 (Reuters) - Argentine port operators
went on strike at two terminals in one of the country's main
grain ports, halting the loading and unloading of ships and
raising concerns in the shipping industry, traders said.
The port strike that began on Monday affected Quebraco
terminal, owned by Cargill, and Terminal 6, owned by Bunge, and
Aceitera General Deheza, both in San Martin port, located in
Santa Fe province.

Trader's Highlight

DJI-NEW YORK, March 23 (Reuters) - U.S. stocks rallied on Tuesday, led by the tech, industrial and materials sectors, driving the Dow and the S&P 500 to 18-month highs.

Signs of improved demand in the semiconductor industry and a broker's positive commentary on Caterpillar lifted blue chips, while tech bellwethers Apple and Cisco hit 52-week highs, indicating increased optimism among investors. Kraft , a Dow component, also hit a 52-week high.

The Dow Jones industrial average <.DJI> rose 102.94 points, or 0.95 percent, to 10,888.83. The Standard & Poor's 500 Index <.SPX> gained 8.36 points, or 0.72 percent, to 1,174.17. The Nasdaq Composite Index <.IXIC> shot up 19.84 points, or 0.83 percent, to 2,415.24.

NYMEX-NEW YORK, March 23 (Reuters) - U.S. crude oil futures pared gains in post-settlement trading on Tuesday, after industry data showed that domestic crude stocks rose much more than expected last week.

Gasoline futures also trimmed gains as data from the American Petroleum Institute showed gasoline stocks dropped far less than expected.

On the New York Mercantile Exchange, May crude was up 7 cents at $81.67 a barrel. It had settled up 31 cents, or 0.38 percent, at $81.91, trading from $80.85 to $82.20.

CBOT-CHICAGO, March 23 (Reuters) - Chicago Board of Trade grains and soy complex close on Tuesday.

CBOT-SOYBEANS - May down 1/2 cent at $9.68 per bushel. New-crop November down 9-3/4 cents at $9.36. Sagged in late trade on profit-taking and a firming dollar but nearby months gained on new-crop on tight U.S. soy stocks and news of a port strike in Argentina that led to concerns about the ability of South America to load and ship soy.

CBOT-SOYOIL - May down 0.18 cent per lb at 39.54 cents per lb. Following soybeans with a firm dollar also weighing.

FCPO-JAKARTA, March 23 (Reuters) - Malaysian palm oil futures closed higher on Tuesday, tracking firm crude oil but an absence of fresh leads capped gains.

The benchmark June crude palm oil future on the Bursa Malaysia Derivatives Exchange was up 21 ringgit or 0.82 percent, at 2,591 ringgit ($780.89) per tonne. Overall trade volume stood at 11,742 lots of 25 tonnes each.

REGIONAL EQUITIES-COLOMBO, March 23 (Reuters) - Most Southeast Asian stock markets rose on Tuesday, buoyed by strength on Wall Street and a surge of fund inflows, while Vietnam bucked the trend.

Singapore <.FTSTI> rose 0.6 percent, Malaysia <.KLSE> gained 0.9 percent to touch its highest since March 18, Thailand <.SETI> ended 1.3 percent firmer, and Indonesia <.JKSE> rose 0.7 percent.

In Singapore, top lender DBS Group gained 1.7 percent, while United Overseas Bank rose 1.14 percent as investors took encouragement from signs of a strengthening global economy.

Malaysia snapped three straight falls ahead of an "Invest Malaysia" conference next week, during which Prime Minister Najib Razak is scheduled to unveil a new economic model to boost growth and win back foreign investors.

FCPO Daily: into Consolidation phase

Market rebounded and recovered following prices found some cushion at around 2528 levels. However, more strength is still needed in order to change the current technical landscape. Thus, market may extend its consolidation phase in near term with immediate upside resistance is pegged at 2600 followed by 2630-2640. While, downside support is lies at 2545 followed by 2528-2523 (left over gap since 8/2/2010).

FKLI Daily: 1280 defended well

Market recovered fast following 1280 levels defended well. Market looks may consolidate in near term. As for now, we are looking for the immediate upside resistance at 1315-1320 followed by 1328-1337 levels. While, immediate downside support is lies at 1287.5.

Trader's Highlight

DJI-NEW YORK, March 22 (Reuters) - U.S. equities rose on Monday as passage of landmark legislation to overhaul healthcare drove up pharmaceutical stocks, including those in Europe, while the euro rose against the dollar as risk appetite returned.

The euro, however, remained pressured by worries over Greece's ability to secure aid to help service its ballooning debts. Traders said the rebound would be short-lived as investors are expected to remain cautious ahead of a summit of European Union leaders on Thursday and Friday.

The Dow Jones industrial average <.DJI> climbed 43.91 points, or 0.41 percent, to 10,785.89. The Standard & Poor's 500 Index <.SPX> rose 5.91 points, or 0.51 percent, to 1,165.81 and the Nasdaq Composite Index <.IXIC> rose 20.99 points, or 0.88 percent, to 2,395.40.

NYMEX-NEW YORK, March 22 (Reuters) - U.S. natural gas futures settled lower on Monday, as moderate U.S. weather forecasts, a sluggish economy and concerns about rising supplies continued to weigh on prices despite early short-covering near support.

April natural gas slid 9 cents, or 2 percent, to settle at $4.079 per million British thermal units after sinking early to a new contract low and six-month spot chart low of $4.036.

CBOT-CHICAGO, March 22 (Reuters) - Chicago Board of Trade grains and soy complex close on Monday.

CBOT-SOYBEANS - May up 6-3/4 cents at $9.68-1/2 per bushel. May climbed to a one-month high at $9.75 as the dollar turned weak, traders said.

CBOT-SOYOIL - May up 0.42 cent at 39.72 cents per lb. Following soybeans higher. Upturn in crude oil adds support.

FCPO-JAKARTA, March 22 (Reuters) - Malaysian palm oil futures ended down on Monday as investors took profit on expectation of milder weather and due to easing crude oil prices.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange closed down 5 ringgit or 0.19 percent at 2,572 ringgit ($775) per tonne. Overall trade volume stood at 12,691 lots of 25 tonnes each, higher than the usual 10,000 tonnes.

Trader's Highlight

DJI-NEW YORK, March 19 (Reuters) - The Dow industrials snapped an eight-session winning streak on Friday, as renewed worries about Greece sparked a climb in the dollar and weighed on U.S. stocks.

Sectors sensitive to dollar moves were hit hard, including materials, chip makers and energy. The S&P Energy Index <.GSPE> was down 0.9 percent as commodities, including gold and U.S. crude oil futures, dropped. Dow component Exxon Mobil fell 0.5 percent to $67.04.

The Dow Jones industrial average <.DJI> dropped 37.19 points, or 0.35 percent, to end at 10,741.98. The Standard & Poor's 500 Index <.SPX> lost 5.93 points, or 0.51 percent, to 1,159.90. The Nasdaq Composite Index <.IXIC> shed 16.87 points, or 0.71 percent, to 2,374.41.

NYMEX-NEW YORK, March 19 (Reuters) - U.S. crude oil futures ended nearly 2 percent lower on Friday, as the dollar gained against the euro, prompting a sell-off in an array of commodities.

Prices also fell as traders were closing out positions on the front-month NYMEX April crude contract, which expires on Monday.

On the New York Mercantile Exchange, April crude, which expires on Monday, settled $1.52, or 1.85 percent lower, at $80.68 a barrel, trading from $79.86 to $82.17. The contract fell for a second day in a row and for the second consecutive
week. For the week, it was off 56 cents, or 0.69 pct.

CBOT-CHICAGO, March 19 (Reuters) - Chicago Board of Trade grains and soy complex close on Friday.

CBOT-SOYBEANS - May up 2-1/4 cents per bushel at $9.61-3/4. Support from short-covering and news from USDA that exporters sold 106,000 tonnes of soy to an unknown destination, likely China, lifted soy as did seasonal buying by commodity trading funds.

CBOT-SOYOIL - May up 0.05 cent at 39.30 cents per lb. Following soybeans and on short-covering after the slide of prices on Thursday.

FCPO-KUALA LUMPUR, March 19 (Reuters) - Malaysia palm oil futures rose 1.7 percent on Friday, aided by some firmer foreign markets after it hit five-week lows the previous day.

The stronger U.S. dollar limited gains in the market. Refined palm oil products are priced in the greenback and any rises in the U.S. currency can limit export sales.

Palm oil lost 2.7 percent this week as investors say prices have run up "too high, too fast" and also on concerns of the incoming South American soy crop pressuring global vegetable oil markets.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 42 ringgit to 2,577 ringgit ($779.7) per tonne. On Thursday, the market fell to 2,528 ringgit, a level not seen since Feb. 5.

REGIONAL EQUITIES-BANGKOK, March 19 (Reuters) - Indonesian shares climbed to their highest level in almost seven weeks on Tuesday as financials and big caps gained, but Thai stocks fell further ahead of an anti-government rally at the end of the week.

Stock markets in the region ended mixed, taking a breather as U.S. stock index futures pointed to a slightly lower start on Wednesday. At 0934 GMT the futures <.DJHO> were down 0.16 percent.

Singapore <.FTSTI> edged up 0.18 percent, Malaysia <.KLSE> fell 0.5 percent, the Philippines <.PSI> added 0.4 percent and Vietnam <.VNI> rose for a fifth session, ending up 1.2 percent.

In Singapore, the index rose for a third session, with the biggest developer, CapitaLand , up 0.25 percent and the largest telecoms firm, Singapore Telecommunication , up 0.96 percent.

In Kuala Lumpur, financials gave up their recent gains, with Malayan Banking falling 1.5 percent, Public Bank easing 0.5 percent and AMMB Holding down 0.6 percent.

Breaking News-RTRS-Palm output to drop as rivers dry up in Malaysian state

KUALA LUMPUR, March 18 (Reuters) - Palm oil output in a key growing state in Malaysia, the world's second largest producer of the commodity, is expected to fall 15 percent as two major rivers irrigating plantations have sunk to dangerously low levels.
The southern state of Johor in mainland Malaysia, and the top producing state of Sabah on the island of Borneo, have experienced a prolonged dry spell driven by the El Nino weather condition that can axe yields and trigger a supply squeeze.

Breaking News-RTRS-Argentina sees 09/10 soy output at 51-55 mln T

BUENOS AIRES, March 18 (Reuters) - Argentina's 2009/10 soybean crop is expected to be at 51 million to 55 million tonnes, the Agriculture Ministry said on Thursday in its first estimate for the new crop.
It also revised its outlook for corn production to 20.5 million tonnes compared with a previous forecast for between 19 million and 21 million tonnes.

Trader's Highlight

DJI-NEW YORK, March 18 (Reuters) - The Dow industrials rose for an eighth consecutive session on Thursday, lifted by a rise in Boeing's stock, while a mixed group of economic figures kept the broader S&P 500 in check.

The Dow's gains came even though more stocks declined than advanced on the broad New York Stock Exchange and on a lower volume day in terms of trading, one day before the expiration of quarterly futures and options.

The Dow Jones industrial average <.DJI> gained 45.50 points, or 0.42 percent, to end at 10,779.17. The Standard & Poor's 500 Index <.SPX> dipped 0.38 point, or 0.03 percent, to 1,165.83. The Nasdaq Composite Index <.IXIC> gained 2.19 points, or 0.09 percent, to close at 2,391.28.

NYMEX-NEW YORK, March 18 (Reuters) - U.S. crude oil futures ended lower on Thursday as the euro fell against the dollar on persistent worries about Greece's debt problems, turning oil traders cautious and snuffing a two-day advance in oil prices.

An analyst's report that OPEC exports would rise in the four weeks to April 3 likewise kept oil futures pinned down. Oil traders saw little comfort from the day's batch of economic data.

On the New York Mercantile Exchange, April crude settled down 73 cents, or 0.88 percent, at $82.20 a barrel, trading from $81.68 to $82.85.

CBOT-CHICAGO, March 18 (Reuters) - Chicago Board of Trade grains and soy complex close on Thursday.

CBOT-SOYBEANS - May up 1/2 cent per bushel at $9.59-1/2. Seasonal buying by commodity trading funds and late short-covering lifted soy to a firm close.

CBOT-SOYOIL - May down 0.58 cent at 39.25 cents per lb. Profit-taking after the gains on Wednesday weighing on soyoil futures, in addition to weight from meal/oil spreading.

FCPO-KUALA LUMPUR, March 18 (Reuters) - Malaysia palm oil futures tumbled on Thursday to hit more than five-week lows as traders booked profits from a recent oil-driven commodity rally.

Palm oil traders were waiting for more cues from dry weather hitting major oil palm growing states in Malaysia, the second largest producer of the vegetable, before they build back positions.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange dropped as much as 67 ringgit, or 2.6 percent, to 2,528 Malaysian ringgit ($768.1), a level not seen since Feb. 5. It closed at 2,535 ringgit.

REGIONAL EQUITIES-BANGKOK, March 18 (Reuters) - Major Southeast Asian stock markets eased on Thursday as investors cashed in on recent rallying shares and as weaker oil prices pulled energy and commodity shares lower.

Investors took their lead from weakness in Hong Kong <.HSI> and China <.SSEC> which erased earlier gains amid renewed fears of a credit tightening by Beijing after regulators asked banks to control the pace of lending.

In Singapore, CapitaLand fell 0.98 percent, after rising over the past two days, and Genting Singapore lost 2.6 percent, ending its four-day run. But banks outperformed, with DBS Group Holdings up 0.97 percent and United Overseas Bank rising 1.5 percent.

In Kuala Lumpur, financials ended mixed, with Malayan Banking up 0.14 percent while AMMB Holdings falling 2.2 percent. Astro All Asia Networks surged 18.82 percent to 4.23 ringitt, with billionaire Ananda Krishnan leading a $2.57 billion buyout offer for Malaysian pay-TV monopoly.

FCPO Daily: Losing ground

A dark cloud cover following the technical rebound was not able to sustain. Market slid to cover partial of the gap left over at 2542-2523. Market momentum weaken further and looks may continue to move bias sideways to lower in near term. Immediate upside resistance is pegged at 2600 followed by 2630-2640. While, downside support is lies at 2528-2523 (left over gap since 8/2/2010) followed by 2470-2462 (gap left over since 2/2/2010).

FKLI Daily: 1300 violated!!

Market violated the 1300 physiological support level had dampened the immediate technical outlook to move sideways bias to downside potential. As for now, we are looking for the immediate upside resistance at 1310-1315 followed by 1320 levels. While, immediate downside support is lies at 1291-1288 (gap left over on 5/3/2010)followed by 1280 levels.

Breaking News-RTRS-Nestle says drops palm oil supplier after report

AMSTERDAM, March 17 (Reuters) - Nestle , the world's biggest food group, said it had stopped buying palm oil from Indonesia's Sinar Mas due to concerns about rainforest destruction, following a similar move by consumer goods firm Unilever.
Nestle's announcement came after Greenpeace released a report on Wednesday which looked into how the company was sourcing palm oil.
Switzerland's Nestle, which uses the edible oil in its food products such as KitKat bars, said it had replaced Sinar Mas with another supplier for further shipments after conducting its own investigations into its palm oil supply chain.

Breaking News-RTRS-UPDATE 1-Dry spell in Malaysia's key palm oil state till April

KUALA LUMPUR, March 17 (Reuters) - El Nino-driven dry weather in Malaysia's key palm oil producing state of Sabah is expected to continue till April, a weather official was quoted as saying by state news agency Bernama on Wednesday.
Sabah's metereological department director general, Abdul Malik Tusin, said the situation was not as bad as in 1997 but the current hot weather was not "normal".

Breaking News-RTRS-Small delays for ships loading Brazil soy - ports

SAO PAULO, March 16 (Reuters) - Ships waiting to load soy in Brazil, the world's No. 2 producer, are experiencing slight congestion at ports due to bad weather, port sources said on Tuesday, but delays were minor compared with peak harvest time last year.
Traders in soy futures traded on the Chicago Board of Trade had cited delays in Brazil as one of the factors causing prices for the oil seed to firm and last week had talked of delays extending for 14 to 16 days.

Breaking News-RTRS-ANALYSIS-US soyoil lures funds on biofuel optimism

CHICAGO, March 16 (Reuters) - Investment funds are betting
U.S. soyoil futures, up 9 percent since February, will keep
rallying as the Obama administration pushes for greater use of
biofuels to reduce dependence on crude oil.
The United States is set to reinstate the $1-a-gallon tax
credit for biodiesel, with recent approval from the U.S. Senate
as part of a jobs creation package. The tax credit expired on
Dec. 31, sharply reducing production of biodiesel made from
soyoil.

FCPO Daily: Technical rebound

Technical rebound following a recent sharp drop. However, market momentum remains weak and looks may continue to move bias sideways to lower in near term. Immediate upside resistance is pegged at 2600 followed by 2630-2640. While, downside support is lies at 2546 followed by 2542-2523 (gap left over on 8/2/2010).

Trader's Highlight

DJI-NEW YORK, March 17 (Reuters) - U.S. stocks gained on Wednesday, pushing the Dow to a 17-month high, after a benign February inflation reading supported the Federal Reserve's renewed pledge of low interest rates.

The market reacted positively to a drop in the February Producer Price Index, further supporting the near-zero interest rates that have propelled the rally in equities.

The Dow Jones industrial average <.DJI> gained 47.69 points, or 0.45 percent, to end at 10,733.67. The Standard & Poor's 500 Index <.SPX> rose 6.75 points, or 0.58 percent, to 1,166.21. The Nasdaq Composite Index <.IXIC> advanced 11.08 points, or 0.47 percent, to 2,389.09.

NYMEX-NEW YORK, March 17 (Reuters) - U.S. crude oil futures settled higher on Wednesday after a government oil inventory report showed falling fuel supplies and as the dollar softened in the wake of the Federal Reserve interest rate decision.

On the New York Mercantile Exchange, April crude rose $1.23, or 1.51 percent, to settle at $82.93 a barrel, trading from $81.72 to $83.09.

CBOT-CHICAGO, March 17 (Reuters) - Chicago Board of Trade grains and soy complex close on Wednesday.

CBOT-SOYBEANS - May up 14 cents per bushel at $9.59. Ended near day's high on late short-covering, buy-stops and fund buying. Weak dollar and firm crude oil supporting soy in addition to support from concern about a potential strike of Argentine truckers and port workers.

CBOT-SOYOIL - May up 0.46 cent per lb at 39.83. Support from gains in soybeans and firm crude oil.

FCPO-KUALA LUMPUR, March 17 (Reuters) - Malaysian crude palm oil futures ended up 1 percent on Wednesday on a technical rebound, after the market hit one-month lows the previous day, but a stronger ringgit curbed gains.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange rose 26 ringgit to 2,595 ringgit ($783.5) per tonne. On Tuesday, the market dropped as much as 25 ringgit to 2,550 ringgit, a level unseen since Feb .12. Overall traded volume rose to 15,515 lots at 25 tonnes each, from the 10,000 lots.

REGIONAL EQUITIES-BANGKOK, March 17 (Reuters) - Indonesian stocks hit two-year
highs on Wednesday as foreign investors piled into Southeast Asia, lured by the prospect of better returns after the U.S. Federal Reserve renewed a pledge to keep rates near zero.

Thailand <.SETI> approach 20 month highs, Singapore <.FTSTI> hit an eight-week high, Malaysia <.KLSE> and the Philppines <.PSI> each posted smaller gains, while Vietnam <.VNI> extended losses for a second day.

Singapore's benchmark index rose 0.8 percent. Among actively traded stocks, Genting Singapore was up 1.6 percent and CapitaLand rose 2.5 percent.

In Kuala Lumpur, the index was up 0.24 percent, reversing a four-day fall, led by gaming group Genting Malaysia and financial AMMB Holdings each gaining almost two percent.

DJI Daily: Hits Fresh New High

Market hits fresh new high to stay above 10,000 physiological resistance levels. Thus, more room to bias upside potential. As for now, we are looking for the immediate upside resistance at 10,800 to 11,000. While, immediate downside support is looking at 10,600 levels.

FKLI Daily: Nothing much changes

Nothing much changes on the immediate technical landscape as 1300 physiological support levels defended well. Market may continue its sideways mode in near term. We continue to look for the immediate upside resistance at 1315-1320 followed by 1325-1337 levels. While, immediate downside support is looking at 1300 levels followed by 1291-1288 (gap left over on 5/3/2010).

Breaking News-RTRS-Pakistan March palm oil imports down, no Apr cover

ISLAMABAD, March 16 (Reuters) - Pakistan's palm oil imports are seen down in March as ample stocks will likely limit incoming shipments to around 118,000 tonnes, a top industry official said on Tuesday.
Malaysia shipped 68,450 tonnes of palm oil products to Pakistan between March 1-15, the Malaysian cargo surveyor Societe Generale de Surveillance said, and the official said Pakistan expected another 40,000-50,000 tonnes for March shipment.

Breaking News-RTRS-Oil World sees lower U.S. March soybean stocks

HAMBURG, March 16 (Reuters) - U.S. soybean stocks at the beginning of March were 35.63 million tonnes, down by 1.5 million tonnes on March 2009, according to estimates by Hamburg-based oilseeds analysts Oil World.
This was 670,000 tonnes down on Oil World's previous estimate on Feb. 26 and would be the lowest U.S. March stock level since 2004.

Breaking News-RTRS-UPDATE 2-India '09/10 edible oil imports to jump 46 pct-min

NEW DELHI, March 16 (Reuters) - India's edible oil imports are likely to rise 46.3 percent in the financial year ending March 31, a minister said, implying much higher purchases than estimated by a leading industry body.
Edible oil imports by India, the world's top buyer, have been rising steadily -- up about a fifth in the first 11 months of the fiscal year according to Solvent Extractors' Association of India -- with growing incomes boosting demand in a country of more than 1 billion people.
Higher imports by India are expected to support international prices, particularly of palm oil, which accounts for 80 percent of India's edible oil purchases.

Breaking News-Reuters Summit-China food security depends on policy choices

BEIJING, March 16 (Reuters) - China needs to reform grain prices and invest more in technology to ensure food security in the face of rapid urbanisation, an influential think-tank chief said in an interview.
"China's grain production is not a problem, the major concern is government policy -- policies in grain prices, agricultural science and technology investment, inputs and markets," Shenggen Fan, director general of the Washington-based International Food Policy Research Institute (IFPRI), said at the Reuters Food and Agriculture Summit.
Beijing has increased spending on seed development and the use of high-quality seeds in the past decade, giving the country plenty of potential to raise crop yields, Fan said.

Breaking News-RTRS-Argentine soy hub workers threaten pay strike

BUENOS AIRES, March 16 (Reuters) - Argentine oil crushing workers could decide to strike within two weeks if grains exporters do not agree to their pay demands, a union leader said on Tuesday.
Argentina is the world's No. 3 soybean exporter and the top supplier of oil and meal, and market talk of a possible strike in the grains port of Rosario helped drive U.S. soy futures higher in morning trade in Chicago. <0#S:>

Trader's Highlight

DJI-NEW YORK, March 16 (Reuters) - U.S. stocks rose to a fresh
17-month high on Tuesday after the Federal Reserve held benchmark rates near zero and maintained its pledge to keep them low for an extended period.

The central bank also pointed to increased momentum in the economy's recovery, and that, coupled with strength in Intel, helped the S&P 500 hit a fresh 17-month high.

The Dow Jones industrial average <.DJI> gained 43.83 points, or 0.41 percent, to end at 10,685.98. The Standard & Poor's 500 Index <.SPX> rose 8.95 points, or 0.78 percent, to finish at 1,159.46. The Nasdaq Composite Index <.IXIC> added 15.80 points, or 0.67 percent, to close at 2,378.01.

NYMEX-NEW YORK, March 16 (Reuters) - U.S. crude futures pushed
higher post-settlement Tuesday after an industry oil inventory report showed crude stockpiles rose less than expected while gasoline stocks fell much more than forecast.

U.S. crude oil futures had already settled higher as the dollar weakened and the U.S. Federal Reserve kept its benchmark Federal Funds rate steady and reaffirmed its intent to keep rates low for an extended period.

On the New York Mercantile Exchange, April crude ended Globex electronic trade up $2.27 at $82.07 a barrel afer settling at $81.70, up $1.90, or 2.38 percent, trading from $79.32 to an $82.10 peak reached post-settlement.

CBOT-CHICAGO, March 16 (Reuters) - Chicago Board of Trade grains and soy complex close on Tuesday.

CBOT-SOYBEANS - May up 15 cents per bushel at $9.45. Talk of delays in shipping soy from Brazilian ports, a weak dollar and firm crude oil combined to lift soybean futures. Also, there are rumors of a potential strike of Argentine truckers and port workers.

CBOT-SOYOIL - May up 0.62 cent per lb at 39.37 cents per lb. Support from gains in soybeans and crude oil.

FCPO-KUALA LUMPUR, March 16 (Reuters) - Malaysian palm oil futures ended off one-month lows on Tuesday on technical buying and production concerns in the world's No.2producer of the vegetable oil.

Benchmark June crude palm oil futures on the Bursa Malaysia Derivatives Exchange settled down 6 ringgit at 2,569 ringgit ($774.2) a tonne after going as low as 2,500 ringgit, a level not seen since Feb. 12. Overall traded volume doubled to 20,673 lots of 25 tonnes each.

FCPO Daily: Market momentum remains weak

Market momentum remains weak despite prices close off the intra-day low. Hence, correction mode is likely to extend in near term. As for now, we are looking for the immediate upside resistance at 2586-2590 (gap left over on 16/3/2010) followed by 2630-2640. To the downside, immediate support is lies at 2542-2523 (gap left over on 8/2/2010).

FKLI Daily: Defended well at 1300 level

1300 physiological support levels was defended well. Thus, correction phase is likely to extend in near term with immediate upside resistance is pegged at 1315-1320 followed by 1325-1337 levels. While, immediate downside support is looking at 1300 levels followed by 1291-1288 (gap left over on 5/3/2010).

FCPO Daily: Losing ground

Market is losing ground following prices failed to hold above the physiological support at 2600 levels. Thus, market is likely to extend its correction mode. As for now, we are looking for the upside resistance at 2650-2652 (gap left over on 12/3/2010) followed by 2670. To the downside, immediate support is lies at 2580 followed by 2542-2523 (gap left over on 8/2/2010).

Breaking News-RTRS-Reuters Summit-"Green" palm oil output may double as prices rise

KUALA LUMPUR, March 15 (Reuters) - Palm oil output that does not cut down forests and harm wildlife may double to 3 million tonnes by the end of this year as benchmark Malaysian prices steadily rise, an industry official said on Monday.
The bulk of it will come from Malaysia as big planters come closer to ensuring their estates, mills and processors comply with commitments set by the industry-driven Roundtable on Sustainable Palm Oil (RSPO).

FKLI Daily: Tiredness

Market shows some tiredness after the recent strong rallied. Weak closing for three straight days with downside gap at 1311-1305 was fully covered had slowing down the market upside momentum. Thus, market may enter into correction phase with upside resistance is pegged at 1325 followed by 1337 levels. While, downside support is looking at 1291-1288 (gap left over on 5/3/2010).

Trader's Highlight

DJI-NEW YORK, March 15 (Reuters) - World equities eased on Monday despite a late-day rally in U.S. stocks, on fears that a likely move by China to tighten credit may slow global growth, while the dollar gained on risk aversion.

Assets perceived as risky, such as stocks, crude oil and other commodities, retreated amid an array of questions about monetary policy, an unclear attempt to resolve Greece's debt woes and how China will manage a looming bout of inflation.

The Dow Jones industrial average <.DJI> closed up 17.46 points, or 0.16 percent, at 10,642.15. The Standard & Poor's 500 Index <.SPX> rose 0.52 point, or 0.05 percent, to 1,150.51. The Nasdaq Composite Index <.IXIC> slipped 5.45 points, or 0.23 percent, to 2,362.21.

NYMEX-NEW YORK, March 15 (Reuters) - U.S. crude oil futures ended down for a second day in a row on Monday, dropping nearly 2 percent to below $80 a barrel, as the dollar strengthened and amid concerns about economic recovery and fears of credit
tightening in China that might curb that country's growth.

On the New York Mercantile Exchange, April crude settled down $1.44, or 1.77 percent, at $79.80 a barrel, the lowest close since March 2's $79.68. It slipped as far as $79.13, the lowest since crude fell to $78.26 on March 2. It posted the day's high at $81.31.

CBOT-CHICAGO, March 15 (Reuters) - Chicago Board of Trade grains and soy complex close on Monday.

CBOT-SOYBEANS - Strong NOPA soy crush number and talk of problems shipping soy from Brazilian ports lift soybean futures. Also, there were rumors of an Argentine port strike and a trucker strike. Gains limited by higher dollar and lower crude oil. May up 4-1/2 cents at $9.30.

CBOT-SOYOIL - Pressure from lower crude oil and unwinding of soyoil/soymeal spreads. May down 0.80 cent per lb at 38.75 cents per lb.

FCPO-KUALA LUMPUR, March 15 (Reuters) - Malaysian palm oil futures closed 2.2 percent lower on Monday to hit a near three-week low on weaker crude oil and soyoil markets.

Palm oil prices have been treading down on concerns of the incoming bumper soybean crop from South America and some profit-taking in the palm oil market as some traders felt prices have run up too fast and too high.

Benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange dropped 59 ringgit to end at 2,590 Malaysian ringgit ($783.7), a level unseen since Feb. 25. Traded volume more than doubled to 22,165 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 15 (Reuters) - Thai stocks ended with slim gains on Monday as banks, expected to benefit from a recovery in the economy, outperformed, but many investors opted to stay away as they waited to see how anti-government protests evolved.

The Thai index <.SETI> added 0.2 percent in a listless session, as thousands of protesters moved to a military base in Bangkok, where Prime Minister Abhisit Vejjajiva has his crisis headquarters, putting pressure on him to call fresh elections.

In Singapore, the main index eased 0.24 percent, ending a strong six-day run, with top lender DBS Group Holdings down 0.6 percent and top telecoms firm Singapore Telecommunications falling nearly 1 percent.

SingTel, which owns 32 percent of Bharti Airtel, said it may help with the funding for Bharti's purchase of Zain's African assets through debt, but added there was no need to inject money directly into its Indian affiliate.

In Kuala Lumpur, the index fell for a third session to its lowest since March 5 as palm plantation firms tracked weaker palm oil futures, with IOI Corp down 2.5 percent and Sime Darby down 1.3 percent. AirAsia Bhd lost 3.01 percent after broker Maybank downgraded the stock to "sell".

Breaking News-RTRS-Reuters Summit-Malaysian tax capping palm oil's price rise

KUALA LUMPUR, March 15 (Reuters) - A windfall tax on Malaysian palm oil earnings that kicked in from November last year has capped gains as buyers see it as a signal to slow purchases, a top industry official said on Monday.
Malaysian Palm Oil Association (MPOA) Chief Executive Mamat Salleh said the 15 percent windfall tax on a tonne of crude palm oil was triggered on companies in the world's No. 2 producer when prices rose above 2,500 ringgit ($756.4).

Breaking News-RTRS-FACTBOX-Neste Oil's growing palm oil use for biofuels

KUALA LUMPUR, March 12 (Reuters) - Neste Oil could buy 2.4 million to 2.5 million tonnes of vegetable oils for four biofuel plants, putting the Finnish refiner on par with consumer goods giant Unilever as a top vegetable oil buyer.
The bulk of Neste Oil's vegetable oil purchases will come from palm oil, currently the cheapest in the world.

Breaking News-RTRS-China soy cancellations expected to slow

BEIJING, March 12 (Reuters) - China's soy buyers who have overbooked U.S. cargoes may still cancel a few more but the trend would be offset by loading delays in Brazil and possible Chinese intervention over falling pork prices, traders said on Friday.
China, the world's top soy buyer, cancelled purchases of 192,400 tonnes of U.S. soybeans in the current marketing year, sending Chicago Board of Trade prices <0#S:> down by 2.6 percent on Thursday.
Traders in China said they believed a large Chinese buyer had switched an import order from U.S. to cheaper South American soy for later shipment on expectation of better crushing margins.
China's feed demand was at a seasonal low in the first three months of this year after more livestock were slaughtered than usual for the spring festival and breeders slowed restocking due to pig diseases, causing pork prices to fall.

FCPO Weekly: Facing resistance at around 2700 level

Market is losing some ground as prices looks facing some resistance at around 2700 levels. Thus, market may due for a consolidation phase in near term. As for now, we are looking for the upside resistance at 2722-2726 levels followed by 2799 levels. While, downside support is lies at 2580-2540.

FKLI Weekly: Remains in upward posture

Market remains its upward posture and looks likely to challenge its recent high 1337-1348 (gap left since 9/3/2008). To the downside, support is pegged at 1311-1305 (gap left over on 14/3/2010).

Trader's highlight

DJI-NEW YORK, March 12 (Reuters) - Mixed consumer and retail data kept U.S. stocks near break even on Friday, but major indexes edged higher for a second straight week.

The S&P 500 failed to build on Thursday's gains, which pushed it to a 17-month high, in what was a tepid week for both bulls and bears. With few economic data points or
corporate earnings reports, the stock market struggled for direction.

The Dow Jones industrial average <.DJI> gained 12.85 points, or 0.12 percent, to end at 10,624.69. The Standard & Poor's 500 Index <.SPX> shed 0.25 point, or 0.02 percent, to 1,149.99. The Nasdaq Composite Index <.IXIC> dipped 0.80 point, or 0.03 percent, to close at 2,367.66.

NYMEX-NEW YORK, March 12 (Reuters) - U.S. crude oil futures ended more than 1 percent lower on Friday, as downbeat consumer sentiment data sidelined an unexpected rise in retail sales, clouding the economic recovery outlook.

A break below trendline support for the front-month April contract also triggered sell stops, before some late buying pared losses, traders and analysts said.

On the New York Mercantile Exchange, April crude settled down 87 cents, or 1.06 percent, at $81.24 a barrel, trading from $80.57 to $83.16, the highest front-month price since the 2010 peak at $83.95 on Jan. 11.

CBOT-CHICAGO, March 12 (Reuters) - Chicago Board of Trade grains and soy complex close on Friday.

CBOT-SOYBEANS - March expired up 1/2 cent per bushel at $9.26. May down 5cents per bushel at $9.25-1/2. Turns weak as USDA announces correction to its announcement of a sale of 220,000 tonnes U.S. soy to China to the new crop year, 2010/11, rather than old-crop 2009/10.

CBOT-SOYOIL - March expired down 0.77 cent per lb at 39.05. May down 0.56 cent 39.55 cents per lb. Unwinding of soyoil/soymeal spreads weighs on soyoil.

FCPO-JAKARTA, March 12 (Reuters) - Malaysia's palm oil futures ended down 0.41 percent on Friday pressured by weaker rival soyoil and due to a stronger ringgit currency, but expectations of stronger exports narrowed loses, traders said.

The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange fell 0.41 percent, or 11 ringgit, to 2,649 ringgit ($797) per tonne after hitting a low of 2,620 ringgit on the day.

REGIONAL EQUITIES-BANGKOK, March 12 (Reuters) - Malaysian stocks hit a one-week low on Friday, weighed down by selling in banks, while Thai shares rose for a third day, reversing early losses as investors bought banks despite worries about anti-government protests.

The region ended mixed ahead of a U.S. Federal Reserve policy meeting next week, with investors waiting to see whether it changes its assessment that economic conditions would justify keeping rates low for an extended period.

Singapore <.FTSTI> rose 0.26 percent, rising for a sixth day, while Indonesia <.JKSE> fell 0.37 percent, erasing some of its early losses after Standard & Poor's Ratings Services raised its long-term foreign currency credit ratings.

In Kuala Lumpur, the index <.KLSE> fell for a second day, down 0.8 percent as investors continued to cash in on recent gains in banking and plantation stocks.

Among decliners, financial CIMB Group fell 1.4 percent, Malayan Banking lost 1.2 percent, Sime Darby slid 1.03 percent and IOI Corp was down 1.25 percent.

Breaking News-RTRS-China commerce minister sees inflation as 2010 risk

BEIJING, March 11 (Reuters) - Rising inflation, imported via global commodity prices, is China's major policy concern this year, Commerce Minister Chen Deming said on Thursday.
Chen was speaking to reporters during the annual session of parliament, hours after the government reported a rise in consumer price inflation to 2.7 percent in the year to February from 1.5 percent in the 12 months to January.

Breaking News-RTRS-US Senate passes bill to extend biodiesel credit

WASHINGTON, March 10 (Reuters) - The U.S. Senate approved a bill on Wednesday that includes revival of the $1-a-gallon biodiesel tax credit for this year, which the renewable fuels industry has said is needed to increase output.
The overall bill, approved 62-36, is a $149 billion package of jobless aid and tax breaks Democrats hope will help spur job creation. The legislation now heads to the House of Representatives, where lawmakers could make changes of their own.

Trader's Highlight

DJI-NEW YORK, March 11 (Reuters) - Global stocks rebounded and oil edged higher on Thursday on renewed optimism over the U.S. economy, overcoming a scare that interest rates may be heading higher because of an inflation spike in China.

The benchmark S&P 500 climbed to a 17-month closing high in a late-day rally sparked by rising retail and banking shares, including a 5.6 percent jump in Citigroup Inc .

Shares worldwide had been under water for most of the day after the spurt in Chinese inflation to 16-month highs sparked concerns China may tighten monetary policy sooner rather than later to curb economic growth and inflation.

The Dow Jones industrial average <.DJI> closed up 44.51 points, or 0.42 percent, at 10,611.84. The Standard & Poor's 500 Index <.SPX> climbed 4.60 points, or 0.40 percent, at 1,150.21. The Nasdaq Composite Index <.IXIC> was up 9.51 points, or 0.40 percent, at 2,368.46.

NYMEX-NEW YORK, March 11 (Reuters) - U.S. crude oil futures ended little changed on Thursday, taking a pause under an eight-week high reached on Wednesday, amid mixed U.S. economic data and uncertainty about China's monetary outlook.

NYMEX crude futures turned in an inside day -- when the session's high and low are within the previous day's range.

On the New York Mercantile Exchange, April crude settled up 2 cents, or 0.02 percent, at $82.11 a barrel, trading from $81.33 to $82.32.

CBOT - CHICAGO, March 11 (Reuters) - Chicago Board of Trade grains and soy complex close on Thursday.

CBOT-SOYBEANS - May down 27-1/2 cents at $9.30-1/2. Pressure from bearish USDA export sales data in Thursday's weekly report. Further pressure from early harvest of likely record large South American soy crop. Concerns about prospects for inflation in China, which might trim China's imports, also weigh.

CBOT-SOYOIL - May down 0.91 cent 40.11 cents per lb. Profit-taking, lower soy and weak crude oil combine to weigh on soyoil futures in addition to a slowdown in U.S. export sales. Some underlying support from news late on Wednesday the U.S. Senate passed a jobs bill that includes a $1 a gallon tax credit incentive for biodiesel.

FCPO-JAKARTA, March 11 (Reuters) - Malaysian palm oil futures ended lower on Thursday, with selling triggered by a bearish crude oil and soyoil market, traders said.

The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange ended down 0.93 percent, or 25 ringgit, at 2,660 ringgit a tonne.

REGIONAL EQUITIES-COLOMBO, March 11 (Reuters) - Most Southeast Asian stock markets rose on Thursday, with Singapore climbing to a seven-week high, led by banking shares, and Thailand rising for a second day despite political worries ahead of a big anti-government rally.

Indonesia and the Philippines gained, but Malaysia and Vietnam bucked the trend, closing in the red.

Singapore <.FTSTI> gained 0.4 percent to its highest since Jan. 21, with top lender DBS Group gaining 0.6 percent and United Overseas Bank rising 1.9 percent.

In Kuala Lumpur, the index <.KLSE> fell 0.5 percent after hitting its highest since March 2008 the previous session, led by a 1.7 percent fall in CIMB Group and a drop of 1.4 percent in Sime Darby .

FCPO Daily: Potential of double top formation

Market failed to challenge the recent high at 2726 levels and chart in a potential of double top formation. Thus, market may enter into correction mode in near term with upside resistance remains pegged at 2722-2726. While, downside support is pegged at 2640-2620 followed by 2600-2580.

FKLI Daily: Bulls took a little breathe

Bulls took a little breathe after the recent sharp rise. Nevertheless, immediate daily technical landscape remains in positive outlook despite prices close lower with a long black candle. Market looks may extend its uptrend move in near term with upside projection is pegged at left over gap at 1337-1348 levels. To the downside, support is lies at 1311-1305 (gap left over on 8/3/2010).

Breaking News - RTRS-REFINED PALM OLEIN FOB MALAYSIA TO TRADE $830 A TONNE-MIELKE

KUALA LUMPUR, March 10 (Reuters) - Malaysian crude palm oil could go above 3,000 Malaysian ringgit ($901.4) a tonne if output slows, a top industry analyst said on Wednesday.
Thomas Mielke, executive director and publisher of Oil World did not give a time frame for what would be a 12.5 percent rise from current levels.
He however said that refined palm olein prices were already near highs of $840-$850 a tonne.
That also means that palm oil could go into a slight premium to soyoil after trading at a diminishing discount so far this year, Mielke added.

Trader's highlight

DJI-NEW YORK, March 10 (Reuters) - Bank and technology shares lifted Wall Street on Wednesday on hopes a revival in business demand will boost corporate profits.

Banks' shares rallied to their highest in 16 months, adding to recent momentum, amid bets an improving economy will stoke loan demand.

The Dow Jones industrial average <.DJI> edged up 2.95 points, or 0.03 percent, to end at 10,567.33. The Standard & Poor's 500 Index <.SPX> rose 5.16 points, or 0.45 percent, to 1,145.61. The Nasdaq Composite Index <.IXIC> gained 18.27 points, or 0.78 percent, to 2,358.95.

NYMEX-NEW YORK, March 10 (Reuters) - U.S. crude oil futures flipped higher in late trading on Wednesday, ending at an eight-week high, after a slip to just below $81 a barrel attracted fresh fund buying, analysts said.

Product futures showed the way back up, having trimmed gains earlier on a broad energy markets profit-taking binge.

The Energy Information Administration's data for the week to March 5 showed a 1.4 million barrel crude stock build, the sixth rise in a row.

On the New York Mercantile Exchange, April crude , settled up 60 cents, or 0.74 percent, at $82.09 a barrel, the highest close since Jan. 11's $82.52. It traded from $80.81 to $83.03, the loftiest since Jan. 11's $83.95 high.

CBOT-CHICAGO, March 10 (Reuters) - Chicago Board of Trade grains and soy complex close on Wednesday.

CBOT-SOYBEANS - May up 10-1/2 cents per bushel at $9.58. USDA forecast for 2009/10 U.S. ending soy stocks at 190 million bushels, below expectations for 194 million

CBOT-SOYOIL - May up 0.72 cent per lb at 41.02. Support from soy, gains in crude oil and lower dollar.

FCPO-KUALA LUMPUR, March 10 (Reuters) - Malaysia palm oil futures are vulnerable to a further price rise this year as the return of El Nino drier weather will coincide with tighter stocks, top industry analysts said on Wednesday.

Palm oil prices have gained support from a drawdown in Malaysian palm oil stock, which dropped 10.9 percent to a four month-low, beating market expectations of a just 5 percent decline.

The benchmark Malaysian palm oil futures rose 1.3 percent on Wednesday, after a 2.2 percent decline a day ago.

Overall production dropped 12.5 percent to 1.16 million tonnes also on fewer working days in February for harvesting and some labour shortages.

Thomas Mielke, executive director and publisher of Oil World, said he predicted that Malaysian palm oil prices may move above 3,000 ringgit on the same ground, if El Nino hits production in key producing countries Indonesia and Malaysia.

REGIONAL EQUITIES-BANGKOK, March 10 (Reuters) - Singapore shares rose to their highest level in almost seven weeks on Wednesday after upbeat economic forecasts, and Thai stocks turned round after four days of losses thanks to selective buying of energy shares.

Optimism in the region grew as Chinese exports and imports in February were better than expected, with Malaysian stocks climbing to a two-year high while Indonesia and the Philippines both touched seven-week highs.

In Singapore, the main index ended up 0.8 percent at its highest since Jan. 21 after a central bank survey showed the city-state's economy was expected to grow 6.5 percent in 2010 after a contraction of 2.0 percent in 2009.

In Kuala Lumpur, the index <.KLSE> rose 0.78 percent to the highest since March 2008, led by plantation firms. Sime Darby gained 1.5 percent, Kuala Lumpur Kepong climbed 2.3 percent and IOI Corp was up 1.47 percent.

Breaking News-RTRS-Palm oil under pressure from likely crude oil drop-Fry

KUALA LUMPUR, March 10 (Reuters) - Malysian palm oil futures may steadily decline below 2,500 ringgit ($748.7) a tonne this year if Brent crude oil drops to $70 a barrel, top industry analyst James Fry said on Wednesday.
That represents a decline of roughly 5-6 percent from current prices, especially if governments worldwide hike interest rates and cut back on spending, dragging Brent crude down by 25 percent within six months, said Fry, the head of LMC International.
Fry also presented data showing that if Brent crude held in a range of $76 to $79 a barrel, chances are that palm oil could range between 2,600 and 2,700 ringgit per tonne over the period from March to September.
The London-based analyst often links Brent crude with palm oil, thanks to the growing use of soyoil and rapeseed in the biofuel sector. Palm oil often substitutes for these edible oils in the global food industry, especially in Europe.