Trader's Highlight

DJI-NEW YORK, Sept 29 (Reuters) - Wall Street took a breather from a month-long rally on Wednesday, with investors bracing for higher volatility going forward as the best quarter in a year nears its end.

The S&P 500 is up 9.1 percent in September, traditionally a weak month for stocks, as investors anticipate the Federal Reserve will take extra steps to spur economic activity. Still, the VIX futures show the options market has a very high level of skepticism about this rally.

The Dow Jones industrial average <.DJI> shed 22.86 points, or 0.21 percent, to 10,835.28. The Standard & Poor's 500 Index <.SPX> dipped 2.97 points, or 0.26 percent, to 1,144.73. The Nasdaq Composite Index <.IXIC> fell 3.03 points, or 0.13 percent, to 2,376.56.

NYMEX-NEW YORK, Sept 29 (Reuters) - U.S. crude oil futures prices rose more than 2 percent to a seven-week high on Wednesday after U.S. government oil inventory data showed crude oil and refined products stocks fell last week.

The weak dollar helped lift oil prices, which also got a technical boost when they pushed through the 200-day moving average of $77.51 for front-month crude. Strong heating oil futures also provided support.

On the New York Mercantile Exchange, November crude rose $1.68, or 2.21 percent, to settle at $77.86 a barrel, its highest close since crude closed at $78.02on Aug. 11.

CBOT-CHICAGO, Sept 29 (Reuters) - Chicago Board of Trade grain and soybean futures close on Wednesday.

CBOT-SOYBEANS - November down 11 cents per bushel at $10.99 a bushel. Lower on long liquidation, profit-taking and news China will sell some of its vegoil reserves . Also pressured by the approach of active harvest of likely record large U.S. soy crop amid improved harvest weather.

CBOT-SOYOIL - October down 0.50 cent per lb at 44.06 cents per lb. Lower on news China plans to sell some of its vegoil reserves - state grain body.

FCPO-JAKARTA, Sept 29 (Reuters) - Global vegetable oil markets fell on Wednesday after China said it would sell vegetable oil reserves and as an improving outlook for soy crops for crushing in South America depressed the market.

Markets had rallied strongly earlier this week as traders bet on top Asian buyers -- China and India -- snapping up more cargoes in the months to come, with Malaysian palm oil futures hitting their highest level since May 2009.

But on Wednesday, palm oil closed down 1.42 percent at 2,698 ringgit per tonne while U.S. Oct soyoil eased 1.19 percent during Asian hours.

China's most-active May 2011 palm oil futures fell 1.4 percent and May 2011 soybean oil eased 1.06 percent by 1041 GMT after the government announced that it would release some of its temporary vegetable oil reserves.

REGIONAL EQUITIES-BANGKOK, Sept 29 (Reuters) - Major Southeast Asian stock markets rose on Wednesday and looked set to post their biggest quarterly rise this year as investors bought more local assets to capitalise on the strong economic performance of the region.

The region rebounded after a mild correction in some markets on Tuesday as speculation that the U.S. Federal Reserve would renew its quantitative easing policy stimulated inflows, dealers said.

Singapore <.FTSTI> rose 0.3 percent, Malaysia <.KLSE> gained 0.2 percent, Indonesia <.JKSE> 0.7 percent and Thailand <.SETI> 1.1 percent. Bucking the trend, the Philippines <.PSI> fell 0.3 percent and Vietnam <.VNI> lost 0.5 percent.

A sharp run-up in share prices has left Southeast Asian valuations among the highest in Asia but has also prompted some caution lately, with expectations growing that economic activity in the region is starting to decelerate.

Singapore's GDP growth is forecast to fall to 4 percent in 2011 from 11 percent in 2010, Thailand's is seen at 4.0 percent versus 6.3 percent, and Malaysia's at 4.5 percent, down from 6.2 percent in 2010, it said in a note.
Singapore, Malaysia and Indonesia are poised for their biggest quarterly gain since the third quarter of last year, up 10 percent, 11.2 percent and 20 percent respectively.