Tuesday, November 2, 2010

Breaking News - RTRS - MALAYSIA'S NEW REPLANTING SCHEME TO TARGET 365,000 HECTARES OF OIL PALMS OVER 2-3 YRS -MPOB CHAIRMAN

KUALA LUMPUR, Oct 29 (Reuters) - The Malaysian government's new replanting scheme will target 365,000 hectares of oil palms older than 25 years as the world's No.2 palm oil producer tries to lift flagging output, a top industry official said on Friday.

Industry regulator the Malaysian Palm Oil Board's (MPOB) new chairman, Shahrir Samad, said the scheme would take two to three years to complete and the government had pledged 297 million Malaysian ringgit ($95.56 million) under the 2011 budget.

The scheme is the latest inItiative to boost yields in Malaysia, which has fallen behind top producer Indonesia in terms of output. An earlier industry-funded scheme to replant 200,000 hectares in 2008 in a bid to boost slumping prices was almost completed this year.

Breaking News - RTRS - INTERVIEW-India urged to cut import duty on green palm oil

KUALA LUMPUR, Nov 1 (Reuters) - A vegetable oils industry body has asked the Indian government to cut its tax on eco-friendly imports of the commodity by one to two percent in a bid to boost consumption, a top trader said on Monday.

India, the world's largest vegetable oil buyer, appears to be heeding a call for large consumers to become more environmentally friendly and buy palm oil from estates committed to protecting forests in Southeast Asia.

Dorab Mistry, head of vegetable oils trading arm of Godrej International and a leading analyst, said the firm's parent spearheaded the Hindustan Unilever coalition of refiners and traders that put the proposal to the government.

Trader's Highlight

DJI-NEW YORK, Nov 1 (Reuters) - Investors were reluctant to make big bets ahead of two events that could dictate the stock market's direction for the rest of the year and beyond, leaving shares little changed on Monday.

U.S. factory activity in October expanded and construction spending rose unexpectedly in September, reports showed. Other data showed manufacturing in China expanded at the fastest pace in six months in October.

The Dow Jones industrial average <.DJI> was up 6.13 points, or 0.06 percent, at 11,124.62. The Standard & Poor's 500 Index <.SPX> was up 1.12 points, or 0.09 percent, at 1,184.38. The Nasdaq Composite Index <.IXIC> was down 2.57 points, or 0.10 percent, at 2,504.84.

NYMEX-NEW YORK, Nov 1 (Reuters) - U.S. crude oil futures ended nearly 2 percent higher on Monday, boosted by comments from the Saudi Arabian oil minister that an oil price between $70 and $90 a barrel was comfortable for consumers.

Expectations that the U.S. Federal Reserve will announce a second round of quantitative easing to help boost the U.S. economy, upbeat manufacturing data from China and the United States, and early weakness in the U.S. dollar encouraged fund buying, analysts said.

On the New York Mercantile Exchange, crude for December delivery settled up $1.52, or 1.87 percent, at $82.95 a barrel, trading from $81.32 to $83.86.

CBOT-CHICAGO, Nov 1 (Reuters) - Chicago Board of Trade grain and soy complex close on Monday.

CBOT-SOYBEANS - November down 3/4 cent at $12.25-1/4 per bushel; January down 1 at $12.35. Scattered rainfall and more seasonal temperatures help ease stress for soybeans in northern Brazil and rain may encourage additional planting in the area. Periodic rainfall will maintain favorable conditions for early planted corn and soybeans in Argentina and the next chance of rain appears to be for this coming weekend.

CBOT-SOYOIL - December up 0.45 cent at 49.75 cents per lb. Support from gains in crude oil.

FCPO-KUALA LUMPUR, Nov 1 (Reuters) - Malaysian palm oil futures hit a new 27-month high on Monday on concern heavy rains may affect palm oil yields and a weak dollar trend lent support.

The dollar has come under pressure against most major currencies as the market anticipates the U.S. Federal Reserve will step up money printing after its policy meeting on Tuesday and Wednesday.

Benchmark Malaysian crude palm oil futures rose as much as 1.2 percent to 3,098 Malaysian ringgit ($1,002) per tonne -- a level unseen since July 28. 2008 and a touch below a key resistance level.

The contract ended at 3,092 ringgit. Overall traded volume stood at 14,307 lots of 25 tonnes each, down from the usual 10,000 lots.

REGIONAL EQUITIES-COLOMBO, Nov 1 (Reuters) - Southeast Asian stock markets rose on Monday on hopes of good demand for the region's exports as data from China and India showed strong production growth, ahead of possible quantitative easing measures in the United States.

Indonesia <.JKSE>, the region's best bourse with a gain of around 44 percent this year, rose 0.3 percent after an early drop, Singapore <.FTSTI> jumped 1.6 percent, Thailand <.SETI> closed 1.9 percent firmer and Malaysia <.KLSE> gained 0.3 percent.

Vietnam <.VNI> bucked the trend with a 0.4 percent fall, while the Philippines <.PSI> was closed for a holiday.

In Singapore, second-biggest lender Oversea-Chinese Banking Corp posted a 27 percent rise in quarterly profit, beating expectations, and its shares rose 2.3 percent.

Despite a net foreign outflow of $58.4 million on Monday, banking shares helped lift the Indonesian index, with a rise of over 13 percent in Bank Mega and Bank Thabungan PN .