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.

Breaking News - RTRS-Bangladesh to slow palm oil imports on rising stocks -trade

KUALA LUMPUR, March 10 (Reuters) - Bangladesh has started to slow purchases of palm oil in March, a trend that may extend to April, due to higher stocks at ports that were bought at cheaper prices two to three months ago, traders said on Wednesday.
Bangladesh joins China and India in slowing palm oil imports from Malaysia and Indonesia, the world's top producers of the vegetable oil. Traders expect buying to resume at a much stronger pace from May onwards when inventories draw down. A Singaporean trader who chiefly supplies to Bangladesh said stocks of mostly imported crude palm olein at Chittagong port was $40-$45 a tonne cheaper than current prices at $830 per tonne, cost and freight (C&F).

Breaking Neaws-RTRS-Malaysia's Feb. palm oil stocks down 10.88 pct-MPOB

KUALA LUMPUR, March 10 (Reuters) - Malaysia's February palm
oil stocks dropped 10.88 percent to 1,785,233 tonnes from a
revised 2,003,175 tonnes in January, industry regulator Malaysian
Palm Oil Board said on Wednesday.
February's decline was lower than market estimates that palm
oil inventories in the world's second largest producer probably
dropped 5 percent to 1.90 million tonnes .

Breaking News- RTRS-UPDATE 1-El Nino crimps Malaysian palm oil output-MPOC

KUALA LUMPUR, March 9 (Reuters) - Dry weather will continue to curb output of crude palm oil (CPO) in Malaysia in the second quarter after a lack of rainfall shaved production in the first two months of the year, an industry official said on Tuesday.
A Reuters poll of five plantation houses showed output dropped 6 percent to 1.24 million tonnes in February on lower seasonal production aggravated by the El Nino weather condition and some labour shortages. [ID:nSGE6230BF]
"Looking at production in the last two months, supply is still quite constrained, largely because of the weather," said Lee Yeow Chor, chairman of the Malaysian Palm Oil Council.

Breaking News-RTRS-INTERVIEW-Bakrie Sumatera sees 2010 palm sales up a third

KUALA LUMPUR, March 9 (Reuters) - Indonesian plantations firm PT Bakrie Sumatera Plantations Tbk expects its palm oil sales volume to grow 32 percent this year as acquisitions start contributing to sales, its chairman told Reuters on Tuesday.
"Our target is to increase sales to 370,000 tonnes this year from 280,000 tonnes last year," Ambono Janurianto, Bakrie Sumatera's president, said in an interview.
Bakrie Sumatera, which also has rubber operations, will start generating sales from is oleochemicals business this year after the $200 million acquisition of Domba Mas, he said.
"Domba Mas is one of the biggest oleochemical facilities in one location. It is an integrated one and has the capacity to produce 150,000 tonnes of fatty alcohol," he said.

Breaking News-RTRS-Oil World expects moderate rise in palm oil prices

HAMBURG, March 9 (Reuters) - Global palm oil prices are likely to rise moderately in the first half of 2010 because of continued strong global demand, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
"Although fluctuating, we expect palm oil prices to trend moderately higher and probably appreciate by $30-60 (a tonne) from end-February until June 2010," it said.
"The global dependence on palm oil will continue to increase during the remainder of this season and also in the years ahead," it said.

Trader's Highlight

DJI-NEW YORK, March 9 (Reuters) - One year to the day after stocks fell to their worst close in more than 12 years, the U.S. market spent most of Tuesday spinning its wheels.

Major U.S. averages ended slightly higher as falling commodity prices pressured materials stocks, offsetting gains in the telecom and industrial sectors.

The Dow Jones industrial average <.DJI> gained 11.86 points, or 0.11 percent, to 10,564.38. The Standard & Poor's 500 Index <.SPX> edged up 1.95 points, or 0.17 percent, to 1,140.45. The Nasdaq Composite Index <.IXIC> rose 8.47 points, or 0.36 percent, to 2,340.68.

NYMEX-NEW YORK, March 9 (Reuters) - U.S. crude oil futures were little changed in post-settlement trading on Tuesday after an industry group's report showed domestic crude stocks rose much more than expected last week.

The American Petroleum Institute said crude stocks jumped 6.5 million barrels, against the forecast in a Reuters poll for just a 1.9 million-barrel build.

The U.S. Energy Information Administration will issue its inventory report on Wednesday at 10:30 a.m. EST (1530 GMT).

On the New York Mercantile Exchange, April last traded down 50 cents at $81.37 a barrel. It was down 47 cents before the API data hit. It had settled 38 cents lower, or 0.46 percent, at $81.49 a barrel, trading from $80.16 to $81.91.

CBOT-SOYBEANS-March up 1 cent at $9.41-1/2 a bushel, May down 1/2 cent at $9.47-1/2.

Ended mostly weak on harvesting of likely record large South American soy crop, firm dollar and weak crude oil. But late short-covering lifted the market above the day's lows and spot March ended firm.

Brazil soy crop view rises to record 67.57 million tonnes - government.

CBOT-SOYOIL-March up 0.02 cent at 39.97 cents per lb, May up 0.02 at 40.30 cents per lb. Overall traded volume was 10,742 lots at 25 tonnes each.

FCPO-JAKARTA, March 9 (Reuters) - Malaysian crude palm oil futures fell more than 2 percent on Tuesday, as investors sold on concerns over the outlook for prices after a bearish forecast from a top industry analyst on rival soybean stocks, traders said.

The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange ended down 59 ringgit, or 2.18 percent, at 2,650 ringgit a tonne on the day.

REGIONAL EQUITIES-BANGKOK, March 9 (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.

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 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.

FCPO Daily: May enter into consolidation phase

Market retreated to close at day low following prices failed to challenge the the recent high at 2726 levels. Thus, consolidation may take place in near term with upside resistance remains pegged at 2726 followed by 2750-2760. While, downside support is pegged at 2640-2620 followed by 2600-2580.

Breaking News-RTRS-Palm oil output shortfall to boost prices-Mistry

16:18 09Mar10 RTRS-MALAYSIA PALM OIL FUTURES TO RANGE 2,600-2,800 RGT/T BETWEEN MARCH-JULY ON HIGH VEGOIL STOCKS - MISTRY
16:19 09Mar10 RTRS-MALAYSIA PALM OIL'S BULLISH PERIOD FROM H2 2010 TILL Q1 2011 - MISTRY
16:20 09Mar10 RTRS-MALAYSIAN PALM OIL FUTURES TO TRADE 2,800-3,200 RGT POST JULY ON PALM OUTPUT SHORTFALL - MISTRY