Breaking News-RTRS-INDONESIA'S PALM OIL ASSOCIATION SAYS SEES SLOWER OUTPUT GROWTH IN 2010 OF 4.5-5 PCT DUE TO RAINS

JAKARTA, Aug 13 (Reuters) - Indonesia's crude palm oil (CPO) production may grow at a slower pace of 4.5-5 percent this year, versus last year's 7.5 percent growth, as prolonged rains have affected yields, the head of the country's palm oil association said on Friday.

Breaking News-RTRS - US 2010 CORN YIELD 165.0 BU/AC (VS TRADE ESTIMATE 164.08), SOYBEANS 44.0 BU/AC (VS TRADE 43.06)-USDA

WASHINGTON, Aug 12 (Reuters) - U.S. farmers will reap record-large corn and soybean crops this fall, barely keeping pace with demand, while a surge in wheat exports will offset a devastating drought in Russia, the government forecast on Thursday.
The Agriculture Department also forecast a cotton crop of 18.5 million bales weighing 480 lbs (218 kg), based on conditions at the start of August. It raised its wheat estimate by 2 percent, to 2.26 billion bushels. Corn, wheat and soybean yields would be record-high.

Trader's Highlight

DJI-NEW YORK, Aug 12 (Reuters) - U.S. stocks ended down for a third straight day on Thursday as an unexpected rise in jobless claims and a sobering revenue outlook from Cisco underscored the hurdles to economic recovery.

Thursday's drop comes a day after all three major indexes posted their worst percentage declines in more than a month, erasing gains for the year in the aftermath of a gloomier outlook from the U.S. Federal Reserve.

The Dow Jones industrial average <.DJI> slipped 58.88 points, or 0.57 percent, to 10,319.95. The Standard & Poor's 500 Index <.SPX> dropped 5.86 points, or 0.54 percent, to 1,083.61. The Nasdaq Composite Index <.IXIC> tumbled 18.36 points, or 0.83 percent, to 2,190.27.

NYMEX-NEW YORK, Aug 12 (Reuters) - U.S. crude oil futures prices fell a third straight day on Thursday, sliding nearly 3 percent as an unexpected rise in U.S. jobless claims fueled concerns about faltering economic growth and tepid oil demand.

A stronger dollar index and the greenback's strength against the euro also pressured oil.

The slide followed a 2.78 percent tumble on Wednesday, when the U.S. government reported inventories of gasoline and distillates rose more than expected last week and China reported that growth in investment and factory output there slowed further in July.

On the New York Mercantile Exchange, September crude fell $2.28, or 2.92 percent, to settle at $75.74 a barrel, trading post-settlement as low as $75.52 on the Globex platform.

CBOT-CHICAGO, Aug 12 (Reuters) - Chicago Board of Trade grain and soy complex close on Thursday. Each market, with the exception of soyoil, closed higher but below the day's highs on late computer-generated positioning.

CBOT-SOYBEANS - August up 12-1/2 cents at $10.57 per bushel; new-crop November up 13 cents at $10.28-1/2. Support from big number for soy in USDA's weekly export sales report, soaring wheat and gains slowed by USDA's forecast for record large 2010 U.S. soy producti

CBOT-SOYOIL - August down 0.54 cent at 41.09 cents per lb. Decline in crude oil weighs on soyoil in addition to soymeal/soyoil spreading.

FCPO-KUALA LUMPUR, Aug 12 (Reuters) - Malaysian crude palm oil futures barely moved on Thursday as traders awaited a key U.S. report on world grains demand and supply that has recently driven vegetable oil markets.

But some investors were concerned that the palm oil market may come under some pressure if export demand slows further on a recent rally that pushed palm oil to a 15-month high earlier this week.

The U.S. government is set to forecast a bigger decline in world wheat stocks and a modest drop in global production as Russia's worst drought in over a century halts exports and threatens to whither the next crop.

The benchmark October crude palm oil contract on Bursa Malaysia Derivatives Exchange ended 4 ringgit lower to 2,673 ringgit ($843.2) per tonne. Overall volume doubled to 20,250 lot of 25 tonnes each.

REGIONAL EQUITIES-COLOMBO, Aug 12 (Reuters) - Southeast Asian stock markets fell on Thursday on growing concerns over the global economic recovery.

Indonesia <.JKSE>, the region's best performing market this year, closed 0.3 percent down, Singapore fell 0.8 percent to a three-week low, and Malaysia lost 0.3 percent.

Vietnam <.VNI>, the region's worst performing market, ended 3.2 percent weaker, while Philippines <.PSI> dropped 1.1 percent. Thailand <.SETI> was closed for a holiday.

In Singapore, banks fell for a second straight day with top lender DBS Group falling 0.7 percent, United Overseas Bank down 1 percent and Oversea Chinese Banking Corp dropping 0.8 percent.

Malaysian shares touched a three-week low in early trade but later recovered. Genting Malaysia fell 1 percent and Malalayan Bank closed 0.5 percent weaker.