Breaking News - Mixed views over key rate

THE market remains divided if Bank Negara Malaysia (BNM) will maintain borrowing costs at the current level in view of the stellar growth performance in the last quarter of 2009 and strong economic growth prospects in the current year.

A Business Times poll of research houses in Malaysia and Singapore showed that 55 per cent of the 21 houses polled were expecting a 25 basis points hike when the central bank's Monetary Policy Committee meets today to discuss the Overnight Policy Rate (OPR), the benchmark interest rate which determines lending rates by banks

Breaking News-RTRS-INTERVIEW-Palm group RSPO's effectiveness in doubt

JAKARTA, March 3 (Reuters) - Rifts within the Roundtable of Sustainable Palm Oil (RSPO), a group formed to encourage green standards, raise doubts over its effectiveness, a leading industry association said on Wednesday.
The palm oil industry, which has come under fire from green groups and Western consumers, set up the RSPO in 2004 to develop an ethical certification system that includes commitments to preserve rainforests and wildlife.
However, barely 5 percent of the combined output of Indonesia and Malaysia is certified, reflecting the difficulty of getting the world's No. 1 and 2 producers respectively to meet standards.

Breaking News-RTRS-INTERVIEW-UPDATE 1-Palm oil's discount to soyoil to stay narrow

KUALA LUMPUR, March 3 (Reuters) - Cash palm oil prices will keep their discount to South American soyoil well below $100, driven by stronger vegetable oil demand as soyoil supply growth will be limited, a top analyst said on Wednesday.
Argentine soyoil now retails at $845 a tonne free on board (FOB), just $30 higher than Malaysian refined palm olein -- the limit to which the discount would narrow to, the head of German-based Oil World Thomas Mielke said.

Breaking News-RTRS-Indonesia Jan palm oil exports up 5.5 pct yr/yr

JAKARTA, March 3 (Reuters) - Indonesian palm oil exports are estimated to have risen 5.5 percent in January to 1.203 million tonnes, from 1.14 million tonnes a year ago, data from the Indonesian Palm Oil Association (GAPKI) showed on Wednesday.

Breaking News-RTRS-China soyoil imports in April-May up from March-CNGOIC

BEIJING, March 3 (Reuters) - China's soyoil imports were likely to increase to between 200,000-250,000 tonnes in April and May each month, up from about 60,000 tonnes projected for March, according to an official grain think-tank.
Soy crushers have resumed production after the Chinese New Year holidays last month, more supplies coupled with larger imports could pressure prices of the edible oils, the China National Grain and Oils Information Centre (CNGOIC) said in a report posted on its website (www.grain.gov.cn) on Wednesday.

Breaking News-RTRS-Obama lays out Volcker rule specifics for Congress

WASHINGTON, March 3 (Reuters) - U.S. banks would be banned from proprietary trading and other large financial firms would face quantitative limits on such activity, according to draft language on the so-called "Volcker rule" from the Obama administration.
Banks would also be banned from investing in or sponsoring hedge funds and private equity funds, according to a draft version of the legislative language obtained by Reuters. A final version of the language is expected to be sent to lawmakers later on Wednesday.
The proposal also would prevent a financial firm from acquiring another company if the resulting firm would have more than 10 percent of the liabilities of the financial system.

NYMEX Crude Daily: May continue to move higher

Market stayed firm at USD80 had strengthened a little the market upside momentum. Thus, market may want to challenge the immediate upside resistance at USD82.00-82.34 followed by USD83.52-83.95. To the downside, support is lies at USD79.00-78.00.

FCPO Daily: Not much changes

Not much changes on the immediate technical outlook as market extended its rangy mode to move in between 2660 to 2580 levels. A significant breakout either to the upside of 2660 or to the downside at 2580 levels may provide a more clearer direction to the market.

Trader's Highlight

DJI-NEW YORK, March 3 (Reuters) - U.S. stocks ended little changed on Wednesday as worries about bank regulation and a setback for drug company Pfizer offset signs of improvement in the labor market and services sector.

Pfizer Inc , the world's largest drugmaker, fell 1.6 percent after its Alzheimer's drug did not meet the main goals of a late-stage clinical trial, weighing on the Dow industrials.

The Dow Jones industrial average <.DJI> slipped 9.22 points, or 0.09 percent, to 10,396.76. The Standard & Poor's 500 Index <.SPX> gained 0.48 point, or 0.04 percent, to 1,118.79. The Nasdaq Composite Index <.IXIC> lost 0.11 point to 2,280.68.

NYMEX-NEW YORK, March 3 (Reuters) - U.S. crude oil futures rose for the second day in a row on Wednesday, posting the highest close in seven weeks, as economic data eased recovery worries and the dollar fell against the euro.

Traders ignored government inventory data showing crude stocks rose more than expected last week.

The euro rose against the greenback after Greece announced a government austerity package to reduce its deficit, easing worries about the the country's debt crisis.

On the New York Mercantile Exchange, April crude settled up $1.19, or 1.49 percent, at $80.87 a barrel, the highest close since Jan. 11's $82.52. It traded from $79.44 to $81.23, highest since the Jan. 12 intraday peak of $82.34.

CBOT-CHICAGO, March 3 (Reuters) - Chicago Board of Trade grains and soy complex close on Wednesday.

CBOT-SOYBEANS - March up 1/4 cent at $9.54-1/2 a bushel, May unchanged at $9.63-1/2. Weak dollar and higher crude lend support but harvest of bumper South American crop limits gains. Gains were waning near the close and May ended below its 40 day moving average of $9.65-1/4.

CBOT-SOYOIL - March up 0.21 cent at 40.02 cents per lb, May up 0.20 at 40.40 cents. Gains in crude oil lifted soyoil futures.

FCPO-KUALA LUMPUR, March 3 (Reuters) - Malaysia's crude palm oil futures climbed nearly 1 percent on Wednesday as some traders took positions ahead of a key industry conference and steady crude oil and soyoil markets.

Expectations for weak Malaysian output figures from last month as well as supportive commodity markets have made palm oil the best-performing vegetable oil market so far this year.

Benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or almost 0.9 percent, to 2,635 ringgit ($781.9), just shy of a one-week high of 2,638 ringgit hit on Monday.

REGIONAL EQUITIES-BANGKOK, March 3 (Reuters) - Equities in Singapore and Thailand posted small gains on Wednesday, while other Southeast Asian bourses trod water, wary of developments in the Greek debt crisis.

Optimism generally increased as Greece looked set to announce measures to tackle its debt crisis [ID:nLDE6220NA]. Against that, U.S. stocks were expected to open weaker. U.S. stock index futures <.DJHO> were down 0.13 percent at 0945 GMT.

In Singapore, the Straits Times Index <.FTSTI> gained 0.4 percent, helped by broad-based buying in property shares, dragged down recently by government measures to cool the housing market.

In Kuala Lumpur, palm plantation firm Sime Darby fell 0.9 percent while IOI Corp was down 0.55 percent. A top industry official said on Wednesday Malaysia, the world's No. 2 palm oil producer, would miss its output target of 18.1 million tonnes because of a shortage of foreign labour, even as yields recover.