Wednesday, October 6, 2010

Breaking News-RTRS-OIL WORLD RAISES FORECAST OF ARGENTINA'S 2011 SOYBEAN CROP TO 52-53 MLN T FROM PREVIOUS ESTIMATE OF 51 MLN T

HAMBURG, Oct 5 (Reuters) - Hamburg-based oilseeds analysts Oil World said on Tuesday it had raised its forecast of Argentine's soybean crop for harvesting in early 2011 to 52-53 million tonnes from 51 million tonnes it forecast in September.
Argentine soybean plantings were likely to be larger than expected but the 2011 crop would still be down from around 55 million tonnes harvested in early 2010, Oil World said.

Breaking News-RTRS-China importing more palm oil, Oil World says

HAMBURG, Oct 5 (Reuters) - China is increasing imports of palm oil partly because of lower prices compared to soyoil, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"China has reportedly stepped up purchases of palm oil on the world market recently, which will result in a notable recovery of palm oil imports from the low arrivals in August," Oil World said.
"Palm oil has improved its competitiveness vis-a-vis soyoil, stimulating recent purchases," it added.
Asian fob palm oil prices were about $115-$137 a tonne cheaper than U.S. and Brazilian soyoil in the past week, Oil World data showed.
Malaysia's September palm oil exports surged 21.3 percent on the month in September, partly because of a rise in shipments to China to 302,000 tonnes from 133,000 tonnes in August, Oil World noted.

Trader's Highlight

DJI_NEW YORK, Oct 5 (Reuters) - U.S. stocks rallied to nearly a five-month high on Tuesday on growing conviction that central banks will do even more to bolster struggling economies worldwide.

The Bank of Japan lit the fuse overnight when it unexpectedly cut rates closer to zero and said it would pour money into the markets through asset purchases. This move came as markets increasingly believe the U.S. Federal Reserve will stimulate the world's largest economy in a similar fashion.

The Dow Jones industrial average <.DJI> gained 193.45 points, or 1.80 percent, to 10,944.72. The Standard & Poor's 500 Index <.SPX> rose 23.72 points, or 2.09 percent, to 1,160.75. The Nasdaq Composite Index <.IXIC> jumped 55.31 points, or 2.36 percent, to 2,399.83.

NYMEX-NEW YORK, Oct 5 (Reuters) - U.S. crude oil futures ended nearly 2 percent higher on Tuesday, the highest close in five months, as a slumping dollar due to a surprise easing by the Bank of Japan prompted buying of oil and a broad array of other commodities.

A prolonged dock strike at a key French port that threatened to affect U.S. imports of European gasoline also supported the day's rise in crude futures.

On the New York Mercantile Exchange, crude for November delivery settled up $1.35, or 1.66 percent, at $82.82 a barrel, the highest close since May 3 when front-month crude ended at $86.19. It climbed to a session high of $82.99 which marked the loftiest since May 4's intraday peak of $86.24.

CBOT-CHICAGO, Oct 5 (Reuters) - Chicago Board of Trade grain and soy complex futures close on Tuesday.

CBOT-SOYBEANS - November up 17-3/4 cents at $10.71-3/4 a bushel. Support from a falling dollar, gains in crude oil in addition to support from soaring gold and equities.

CBOT-SOYOIL - October up 0.37 cent at 43.47 cents per lb. Boosted by gains in soybeans and firm crude oil.

FCPO-KUALA LUMPUR, Oct 5 (Reuters) - Global vegetable oil markets rose on Tuesday as traders took some positions on concerns over the impact of weather on soy growing and palm oil producing areas.

China's financial markets will only open on Friday after the week-long National Day holidays, giving few cues to regional traders.

Strong rains in Malaysia's palm oil producing regions may lift prices as floods and prolonged exposure to rains may hurt yield quality and curb supplies.

Although news of crop-friendly rains in oilseed growing regions of South America and the Black Sea region that were earlier under a dry spell have added to the bearish sentiment.

Benchmark Malaysian palm oil prices <0#KPO:> gained 29 ringgit to close at 2,705 ringgit ($875.4). The same contract fell to two-week lows due to sell-off in grains markets after a report of huge U.S. corn stockpiles the previous day.

REGIONAL EQUITIES-BANGKOK, Oct 5 (Reuters) - Most Southeast Asian stock markets rebounded from early falls to finish up slightly on Tuesday, buoyed by foreign inflows and steps towards monetary policy easing by Japan's central bank.

The move by the Bank of Japan sparked a climb in the Nikkei and helped to reverse some earlier slumps across Asia triggered by a fall on Wall Street and weaker oil and metals prices.

Malaysia <.KLSE> led the region, finishing up at almost 0.7 percent, with the country's smallest cellphone service provider, DiGi.com <.DSOM.KL>, climbing 18.1 percent.

Singapore <.FTSTI> came back after earlier falls to finish on 0.16 percent, pulling back from a two-year high reached a day earlier following a falls on Wall Street overnight.

Shares of Singapore commodity firm Olam International fell as much as 4.8 percent on profit-taking amid news of a merger with Louis Dreyfus.