RTRS-Soybean output set for record 19 mln T fall-Oil World

AMSTERDAM, Feb 28 (Reuters) - Global soybean output this year is set for a record drop of 7.2 percent, or 19 million tonnes, mainly due to bad weather conditions in key growing areas in South America, Germany-based analyst Oil World forecast on Tuesday.

"World production of soybeans is likely to plunge by (a)staggering 19 million tonnes to only 246.5 million tonnes in 2011/12, according to our current estimates - the biggest year-on-year reduction ever registered," Oil World said in a monthly report.

It said prices of soybeans were firm in February, lifting prices of other oil seeds and oil meals.

Soyoil on the European vegetable oil market [OILS/E} rose 50 euros since February 1 to 960 euros a tonne on concerns that a drought in South America has hit the crop.

Oil World said that prices were further supported by strong demand from China where imports are estimated at 28.5 million tonnes of soybeans between April and September this year, an increase of 1.8 million tonnes from the same period a year ago.

Analysts believe growing demand from China, which accounts for more than half of the soybeans traded in the world, threatens to hit global supplies and stir concern over food inflation.

"The crop failure in South America will raise the world market's dependence on U.S. supplies," Oil World said.

"We already expect some shift to occur from now on resulting in a year-on-year increase of U.S. soybean exports by 1.6 million tonnes to 10.6 million tonnes in March/August, virtually offsetting the total decline in South American exports in that period primarily from Paraguay and Brazil."

The United States is the world's largest soybean exporter, followed by Brazil and Argentina.

RTRS-UPDATE 1-Singapore's Golden Agri to almost double Indonesian palm oil refining ops

SINGAPORE, Feb 28 (Reuters) - Singaporean palm oil firm Golden Agri Resources plans to nearly double its Indonesian refining capacity to 2.6 million tonnes over the next two years as it exploits the country's lower export taxes for refined edible oils, a top official said.

With currently over half a million hectares of land and 1.4 million tonne refining capacity in Indonesia, Golden Agri is a key beneficiary of Jakarta's move in 2011 to slash export taxes, the firm's Executive Director Rafael B. Concepcion Jr said.

"This (the export tax) has clearly incentivised us to continue with our strategy to producing more downstream and more value-added products and to expand the markets internationally," Concepcion said in a company earnings briefing late on Monday.

"As we look into the 2012 results we will see the full benefits being reflected in the company results," he added.

Golden Agri's fourth quarter net profit tumbled 36 percent to $748 million from a year ago, hurt by higher fertiliser costs as well as a fall in output of palm oil products. Shares dropped 2.7 percent on Tuesday after the earnings announcement.

Golden Agri's subsidiaries include Jakarta-listed SMART TBK, which manages all of Golden Agri's oil palm plantations .

Indonesia's Widjaja family controls both the firms, which dominate the Indonesian plantation sector together with Singapore-listed competitors Indofood Agri Resources and Wilmar International.

Concepcion said the Jakarta export tax changes would bring new competitors into Indonesia, the world's top palm oil producer, although their success would depend on having planted oil palms to feed the refineries.

"But ultimately it is not only the tax differential that has to be considered by potential entrants, but their ability to access supply and to market the output not only to Indonesia but also to exports market," Concepcion said.

Malaysia's second largest palm oil firm IOI Corp said on Monday it can build a refinery in Indonesia in three years once its secures higher supply from its estates in the country. [ID:nL4E8DR53V]

Golden Agri also plans to expand its presence in China by boosting its annual crude palm oil refining capacity in the world's second largest palm oil buyer to 396,000 tonnes in the first half of the year from 380,000 tonnes.

"China is the largest market for edible oil with high population, and its economy is expected to grow at respectable rates, and we do believe that this growth story will continue," said Concepcion.

Golden Agri officials said in the results briefing that the firm will set aside $500 million for growth in 2012 with half spent on developing plantations. About $200 million will be used to develop its downstream industry.

RTRS-INTERVIEW-UPDATE 1-Indonesia palm export tax risk to Malaysia refineries

PUTRAJAYA, Malaysia Feb 28 (Reuters) - The change in palm oil export tax in the world's largest supplier, Indonesia, may hurt plans for 25 new refineries in Malaysia where processors are already suffering from weak margins, a Malaysian government minister told Reuters on Tuesday.

Indonesia last year cut export taxes on refined grades that helped its domestic processors restart their factories and offer discounts to overseas buyers.

That turned margins negative for refiners in Malaysia, the No.2 palm oil producer, and the government is looking at ways to keep investments flowing into its $20 billion sector, Commodities Minister Bernard Dompok said.

"There is that certainty of losing investors. Of course, we are very concerned about these planned investments," Dompok said in an interview ahead of the Bursa Malaysia Palm Oil Conference next week.

He said the government was looking to give the refineries "assistance in some form". Some of the proposals on the table included helping existing and new refiners with grants to promote the production of higher value palm oil products used in infant formula, ice cream and vitamin E supplements, Dompok said at his office in Malaysia's administrative capital of Putrajaya.

Malaysia has 51 refineries with a combined yearly capacity of 22.9 million tonnes. It plans new capacity of 9.6 million tonnes.

The 25 new refineries are in various planning and construction phases in Malaysia's Borneo island states of Sabah and Sarawak, Dompok said.

One key investor has already shifted some of its focus to Indonesia.

Trader's Highlight

DJI- NEW YORK, Feb 28 (Reuters) - The Dow closed above 13,000 for the first time since May 2008 on Tuesday and the S&P 500 also hit a milestone, as buoyant U.S.
consumer confidence data and a sharp drop in oil prices nudged the nearly five-month rally forward.

The S&P 500 closed above 1,370, its May 2011 intraday high, a move that could invite momentum buying as money managers chase performance, though low volumes lately have
raised concerns about the rally's longevity.

The Dow Jones industrial average <.DJI> gained 23.61 points, or 0.18 percent, to close at 13,005.12. The Standard & Poor's 500 Index <.SPX> rose 4.59 points, or 0.34 percent, to end at 1,372.18. The Nasdaq Composite Index <.IXIC> climbed 20.60
points, or 0.69 percent, to finish at 2,986.76.

NYMEX- Feb 28 (Reuters) - U.S. crude oil futures ended lower for a second day on Tuesday, pressured by weak durable goods data that trumped an upbeat report on consumer confidence, and technical signals showing the market correction from near $110 a barrel has not completed.

Investors extended a profit-taking binge, with crude and refined product futures having hit overbought conditions in recent sessions. A warning over the weekend by G20 officials on the risks to global growth amid high oil prices triggered a
sell-off that began on Monday.

Forecasts in a Reuters poll ahead of weekly inventory data showing that U.S. crude and gasoline inventories rose last week also weighed on crude futures. Gasoline and heating oil futures ended sharply lower, also extending losses for a second day, on liquidations ahead of the expiration on Wednesday of their front-month March contracts.

For the moment, worries about Iranian oil supply disruptions
were in the background as the Islamic Republic's foreign minister, in a U.N.-sponsored Conference on Disarmament in Geneva, called for more talks with the U.N. nuclear watchdog and condemned production of atomic weapons as a "great sin"

The United States has imposed sanctions against Iran and a European Union ban on Iranian oil will take effect on July 1. Both aim to make Iran back down from its nuclear program that is suspected to have military objectives. Iran has denied this, but the tensions spawned by its belligerence has elevated oil prices.

A U.S. government report on the global oil markets due from the EIA on Wednesday could help determine how tough the Obama administration will be enforcing sanctions against Iran and provide information in needs to combat rising oil prices.

On the New York Mercantile Exchange, crude for Aprildelivery settled at $106.55 a barrel, down $2.01, or 1.85 percent, after trading between $106.30 and $108.79.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade advanced for a seventh straight session, reaching a five-month high on expectations that shrinking supplies in South America will boost U.S. exports, especially to top buyer China.

Global soybean output this year is set for a record drop of 7.2 percent, or 19 million tonnes, mainly due to bad weather conditions in key growing areas in South America - Oil World.

Cash basis bids for soybeans shipped by barge to the U.S. Gulf Coast were steady to firm, supported by good export demand and the need by some short-bought exporters for nearby supplies, traders said.

The March and May contracts settled above all key moving averages, and the nine-day RSI for most-active May rose to 86, from 83 ahead of the open, moving farther into the technically overbought range of 70 to 100.

Traders expect zero to 300 soybean deliveries on Wednesday, which is first notice day for March futures contracts. Traders expects zero to 300 soymeal deliveries and
2,000 to 4,000 soyoil.

FCPO- SINGAPORE, Feb 28 (Reuters) - Malaysian crude palm oil futures touched a new eight-and-a-half month high on Tuesday, buoyed by improving demand prospects, but gains were limited as investors worried about the risks to global growth from high oil prices.

Malaysian export numbers on Monday pointed to strengthening demand, helping to lift palm oil prices which have gained 7 percent so far this month.

"Exports were quite weak last month. Overall demand is higher this month and it should be positive for prices," said James Ratnam, an analyst with TA Securities in Malaysia.

"Recently the U.S. Department of Agriculture revised soybean stocks downwards. So all these things coming together and they are pushing prices up."

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.4 percent to close at 3,295 ringgit ($1,095) per tonne. It touched an intraday high of
3,321 ringgit, highest since June 9 last year.

Traded volumes stood at 25,613 lots of 25 tonnes each, higher than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 28 (Reuters) - Indonesian stocks climbed more than 1 percent on Tuesday while most other Southeast Asian stock markets moved higher amid selective buying of beaten-down big caps though investors remained cautious about the impact of high oil prices.

Consumer and banking stocks that had led recent losses in such as Indonesia's PT Astra International, Thailand's Kasikornbank Pcl and Philippine Metropolitan Bank and Trust Co, recouped some lost ground.

RTRS-BRAZIL'S 2011/12 SOY CROP SEEN AT 69.9 MLN T VS 71 MLN T IN EARLY FEBRUARY - AGROCONSULT

LONDRINA, Brazil, Feb 27 (Reuters) - Brazilian agriculture consultancy Agroconsult cut its outlook on Monday for Brazil's soy crop by 1.1 million tonnes to 69.9 million tonnes from the 71 million tonnes it had forecast earlier this month.

A separate consultancy, Agrural, cut its own forecast to 68 million tonnes on Monday from the 70.2 million tonnes it had forecast in January.

Brazil's grains crops have suffered a harsh drought in southern states which top soy state Mato Grosso escaped.

RTRS-Brazil soy crop sales, harvest - Celeres

SAO PAULO, Feb 27 (Reuters) - Sales of Brazil's 2011/12 soybean crop rose to 55 percent of the total expected production of 72 million tonnes, up from 53 percent a week earlier, analysts Celeres said on Monday.

Harvest is picking up across the main center-west and southern soy belts, where rain has been less than optimal this year and will keep the world's No. 2 soybean producer from surpassing last year's record harvest.

Celeres said harvest has reached 29 percent of the crop area by February 24, up from 19 percent in the week prior. Last year at this time, 19 percent of the crop had been collected. The No.1 soybean state Mato Grosso, No. 2 soy state Parana and No. 4
soy state Goias were the most advanced in harvest.

The south is due to get rain this week that should help parched crops that are still developing but will not reverse losses already caused by the drought in the region since November. Wet center-west producers should see relief from incessant rains that will favor harvest work.

Brazil is the world's second biggest soybean producer after the United States and is expected to surpass it to become the largest exporter of the oilseed this year for the first time since 2005/06.

Trader's Highlight

DJI- NEW YORK, Feb 27 (Reuters) - Oil prices snapped a week-long rally on Monday and the S&P 500 stocks index edged up to its highest level since June 2008, while positive U.S. home sales data soothed investor worries about the effect of high energy costs on the economy.

U.S. crude oil prices fell more than 1 percent. Stocks, after a weak start, ended little changed, but the S&P was able to extend its gains for a third session.

In Asia, however, stocks were set for a shaky start, with Nikkei futures traded in Chicago falling 115 points.

The dollar rose as some of the investment money in oil flowed into currencies after officials from the Group of 20 countries sounded fears that rising energy prices were hurting global economic growth.

The greenback rebounded from a near three-month low against the euro. It hit a nine-month peak versus the yen before giving back some gains.

U.S. Treasuries climbed on demand for safe-haven government debt. The benchmark 10-year U.S. Treasury note was up 14/32, its yield at 1.9273 percent.

High energy costs have been cited as one factor preventing a runaway rally in equities.

Stocks on Wall Street are up 9 percent year-to-date, as measured by the S&P 500 index. But it has been stuck in a tight range of around 1,355-1,370 points despite data pointing to a firmer recovery in the U.S. economy, including the housing and labor markets.

The Group of 20 finance ministers and central bankers said on Sunday they were alert to risks of higher oil prices and discussed at length the impact sanctions on Iran will have on crude supplies and global growth.

At the close, the Dow Jones industrial average was down 1.44 points, or 0.01 percent, at 12,981.51. The Standard & Poor's 500 Index was up 1.85 points, or 0.14 percent, at 1,367.59. The Nasdaq Composite Index was up 2.41 points, or 0.08 percent, at 2,966.16.

NYMEX- NEW YORK, Feb 27 (Reuters) - U.S. crude oil futures fell on Monday, ending a seven-day winning streak, as overbought conditions and a warning from G20 officials about the impact of higher oil prices on global growth prompted investors to book
profits.

In regular floor-trading hours losses were capped on news that TransCanada Corp aimed to build the southern leg of its $7 billion Keystone XL oil pipeline first. That would skirt full federal review of the project and sparked competition
to move crude out of the glutted Cushing, Oklahoma, delivery point for U.S.-traded crude futures.

In post-settlement electronic trading, U.S. crude extended losses to more than $2. Analysts cited momentum trading and technical sell stops being triggered in electronic trading.

Gasoline and heating oil futures fell, dragged down by weaker crude oil and by selling ahead of weekly inventory reports.

Worries about Greek's debt crisis continued to ease as Chancellor Angela Merkel managed to get a second Greek bailout approved in the German parliament without having to rely on the votes of opposition lawmakers. But she fell short of the big
majority needed for a convincing victory.

Officials of the G20, which represents the world's leading economies, said in a meeting in Mexico City that Europe must put up extra money if it wants more help from the rest of the world, raising pressure on Germany to drop its opposition to a bigger European bailout fund.

On the New York Mercantile Exchange, crude for April delivery settled at $108.56 a barrel, down $1.21, or 1.1 percent, after trading between $108.24 to $109.77. In
post-settlement trading, it fell further to $107.27.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher for a
sixth straight session, reaching a five-month top on expectations of continued U.S. export demand from China amid shrinking soy crops in South America, traders said.

Spot soybeans hit $12.95 per bushel, the highest spot price on the continuous chart since Sept. 22, 2011. The March and May contracts broke and settled above
their 200-day moving averages.

Spot soyoil and soymeal futures also hit five-month peaks, with soyoil reaching 54.60 cents per lb and soymeal touching $340.60 a ton.

Soybeans lifted by ongoing export demand from China and outlooks for dwindling U.S. soybean supplies.

Brazilian consultancy Agrural cut its estimate of Brazil's 2011/12 soy crop to 68 million tonnes, from 70.2 million last month, while another firm, Agroconsult, lowered its forecast to 69.9 million tonnes, from 71 million previously.

FCPO- SINGAPORE, Feb 27 (Reuters) - Malaysian crude palm oil futures ended off an eight-and-a-half month high on Monday, with traders booking some profit on a rally driven by improving demand and still-high energy prices.

Oil prices also slipped below $125 after five days of gains pushed the benchmark to 10-month highs, prompting other commodity markets like palm oil to give up some gains.

Palm oil prices have gained more than 6 percent so far this year. The export trend is positive for crude palm oil prices.

High oil prices will also be supportive because about 11 percent of global vegetable oil is used for biodiesel," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.

"But the Europe situation is still unresolved in the short term and that could be mildly negative for palm oil prices," the analyst cautioned.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 0.2 percent to 3,282 ringgit ($1,086) per tonne after going as high as 3,298 ringgit,
the highest since June 9 last year. Traded volumes stood at 20,246 lots of 25 tonnes each,compared to the usual 25,500 lots.

REGIONAL EQUITY- Feb 27 (Reuters) - Southeast Asian stock markets closed weaker on Monday as rising oil prices raised concerns over global economic growth, weighing on how investors feel about the region's emerging markets.

Trading volumes were moderate as cautious investors stayed cautious, due to growth worries. Some were focusing on the European Central Bank's second refinancing operation set for Wednesday for more cues.

Foreign investors were net sellers in Indonesia with a $54.3 million outflow. Enjoying new inflows on Monday were Thailand ($20.3 million) and Malaysia (51.17 million ringgit, or $16.7million).

Oil prices held near a 10-month high on Monday due to supply concerns as tensions over Iran's disputed nuclear programme worsened, while the rise in oil weakened the outlook for industrial metals demand and pushed copper futures lower.

In Singapore, lack of positive triggers led some investors to take profits ahead of the earnings reports of several large companies, including Noble Group Ltd, Sembcorp Industries Ltd and City Developments Ltd later this week, traders said.

Gold and cash were the preferred assets for investment amongst investors, while equities have become the least favoured category, the survey, which measures attitudes towards investment conditions in Singapore, showed.

RTRS-Argentine grains truck owners vow strike in March

BUENOS AIRES, Feb 24 (Reuters) - Owners of Argentine grain trucks vowed on Friday to strike starting March 19 to demand higher transport rates, a protest that could disrupt hauling during early corn and soy harvesting.

Argentina is one of the world's top exporters of corn, soybeans and soy products, most of which are moved to port by truck. Strike threats are common at this time of year as labor unions seek annual wage hikes.

The FETRA group of trucking companies went on strike in October to demand a guaranteed minimum hauling tariff, which the government agreed to ensure nationwide.

But truck owners say this has not happened.

"The agreement we reached ... for a national tariff is not being carried out. The situation is getting worse and worse and that means we'll be forced to strike, unfortunately," said Pablo Agolanti, Fetra's vice president.

The group also seeks to reach a deal with the government to revamp its fleet of trucks and have safer, healthier conditions at Argentine ports, where drivers often wait for days to unload their cargo.

High inflation, estimated by private economists at between 20 percent and 25 percent annually, has made wage and tariff negotiations increasingly tough in recent years.

Argentine farmers began gathering the 2011/12 corn crop, which the government estimates at between 20.5 million and 22 million tonnes. In the coming weeks they will start harvesting a soy crop which is forecast at 43.5 million to 45.0 million tonnes.

Trader's Highlight

DJI- NEW YORK, Feb 24 (Reuters) - Brent oil rose above $125 a barrel to end near a 1o-month high on Friday as the United Nations' nuclear watchdog said Iran has sharply stepped up work on uranium enrichment, while the S&P 500 closed at the highest level since June 2008.

The sharp run higher in oil prices has increased worries that slower consumer demand will stymie global economic growth, particularly as the euro zone remains mired in a debt crisis and appears headed for recession.

A day after hitting a record high in euro terms, Brent crude jumped $1.85 to settle at $125.47, its fifth day of gains.

The news on Iran, in a report from the United Nation's International Atomic Energy Agency, was seen as certain to intensify concerns about Iran's atomic aims. For the week, Brent crude is up 4.9 percent, its biggest weekly percentage gain since the week to Jan. 6.

Brent's recent gains have been fueled mainly by worries over Iranian supply. European buyers of Iranian oil have cut back on purchases ahead of a European Union embargo effective July 1. Some of Iran's biggest customers in Asia including China have also reduced their buying.

"The recent resurgence in the price of crude oil has led to speculation that, in a repeat of what happened at this time last year, a spike in energy prices could undermine real economic growth just when the recovery appears to be gathering momentum again," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.

Despite oil's rise, the U.S. benchmark S&P 500 inched up to close at the highest since before the collapse of Lehman Brothers in 2008, continuing a pattern of steady gains on signs of U.S. economic recovery. World stocks gained as well.

The broad index is up more than 8 percent this year, a rally built on a succession of incremental gains and only a handful of losses, not one of them worse than a 0.7 percent drop.

Many analysts still expect a more significant pullback but a string of upbeat economic reports in recent weeks, including Friday's better-than-expected data on consumer confidence, has offset worries about an impending correction.

The Dow Jones industrial average dipped 1.74 points, or 0.01 percent, to end at 12,982.95. The Standard & Poor's 500 Index gained 2.28 points, or 0.17 percent, to 1,365.74. The Nasdaq Composite Index rose 6.77 points, or 0.23 percent, to 2,963.75.

NYMEX- NEW YORK, Feb. 24 - U.S. crude futures rose a seventh day on Friday, closing at a nine-month high and having the best week since December as the U.N. nuclear watchdog said Iran had stepped up uranium enrichment work was seen inflaming Tehran's
tensions with the West.

The seven-day rally was the longest streak of gains for U.S. crude since prices rose 10 straight days in late December 2009 to early January 2010. Prices gained more than 6 percent for the week, the best weekly performance since the week to Dec. 23.

Apart from worries of Iran supply disruptions, economic data showing that U.S. consumer confidence hit its highest point in a year this month and signs of budding recovery in the housing market added support to crude futures.

On the New York Mercantile Exchange, crude for April delivery settled at $109.77 a barrel, gaining $1.94, or 1.8 percent, the highest settlement since May 3, when prices ended at $111.05.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade settled firm on export demand from China and a foreast for U.S. soybean inventories to tighten in marketing year 2012/13, traders said.

A weaker U.S. dollar and spillover strength from U.S. crude oil futures added support.

Soybeans unofficially ended up 1 percent for the week, the second straight weekly rise and the fifth in six weeks.

USDA at its annual outlook forum projected that U.S. 2012/13 soybean ending stocks would drop to 205 million bushels, from 275 million in 2011/12.

Traders noted unconfirmed talk that China may have purchased five to 10 cargoes of U.S. soybeans this week.

USDA showed export sales of U.S. soybeans in the latest reporting week at 4,032,400 tonnes, above a range of trade estimates for 3,500,000 to 3,900,000 tonnes. USDA said China bought 521,100 tonnes for 2011/12 and 2,805,000 for 2012/13, while another 68,000 tonnes was sold to "unknown" for 2012/13.

USDA reported weekly soymeal export sales at 216,000 tonnes and soyoil sales at 25,200 tonnes, both above trade expectations.

FCPO- SINGAPORE, Feb 24 (Reuters) - Malaysian crude palm oil futures closed higher on Friday, although gains were capped as investors were wary that rising oil prices could hurt global economic growth and commodity demand.

Emerging concerns that No.2 edible oil consumer China's demand for the tropical oil could ease on high stock levels may further depress prices that rose more than 6 percent this month alone.

"China's demand for palm oil will slow down as its economy is slowing and the government is trying to maintain slow growth," said a Singapore-based physical trader with a local trading company.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange inched up 0.1 percent to close at 3,276 ringgit ($1,088) per tonne. Prices hit a high of 3,294 ringgit on Wednesday, the highest since June 9 last year. Traded volumes were thin at 19,442 lots of 25 tonnes each, compared to the usual 25,000 lots.

REGIONAL MARKET- Feb 24 (Reuters) - Southeast Asian stock markets were mixed on Friday, with Thailand hitting a near 16-year high while concerns over rising oil prices and economic slowdown in the euro zone hurt some indexes.

Despite volatility, Thailand, the Philippines and Malaysia this week enjoyed foreign inflows of $340.4 million, $133.2 million and $114 million respectively.

Improvement in the U.S. jobless data, which was at a four-year low last week, lifted market sentiment in the region slightly with Thailand gaining 0.5 percent to hit its
highest close since July 23, 1996 and Singapore adding 0.3 percent, both in moderate trading volume.

Malaysia edged up 0.1 percent with a foreign inflow of 123.48 million ringgit ($40.96 million).

Commodities led by energy shares pushed Bangkok with top oil firm PTT PCL and PTT Exploration and Production PCL gaining 0.8 percent and 2.5 percent respectively.

In Singapore, United Overseas Bank Ltd weighed on the broader market with a 1.6 percent fall after reporting poorer-than-expected earnings.

RTRS-INDONESIA SAYS KEEPS EXPORT TAX FOR CRUDE PALM OIL AT 16.5 PCT FOR MARCH -TRADE MINISTRY OFFICIAL

JAKARTA, Feb 24 (Reuters) - Indonesia, the world's top palm oil producer, will keep its export tax for the edible oil unchanged at 16.5 percent and its tax on cocoa beans at 5 percent for March, a trade ministry official said on Friday.

The government also kept the export tax for RBD palm olein at 8 percent for March.

RTRS-Rosario exchange slashes Argentine soy outlook

BUENOS AIRES, Feb 23 (Reuters) - Argentina's biggest grains exchange slashed 5 million tonnes from its forecast for the country's drought-damaged soy crop on Thursday, helping push U.S. futures to a five-month high.

Weeks of dry weather battered young soy and corn crops in the South American country. The Rosario grains exchange also trimmed its forecast for corn production, to 19.8 million tonnes from 21.4 million tonnes a month ago.

The country's soy harvest should come in at 44.5 million tonnes, the exchange said, down from the previous outlook for 49.5 million tonnes, as the extent of drought damage becomes clearer in the world's No. 3 soybean exporter.

The losses are significant in main producing provinces, especially Cordoba," an exchange report said, estimating the average yield at 2.4 tonnes per hectare.

Rosario's downbeat forecast -- as well as a weaker dollar --pushed soybean futures on the Chicago Board of Trade higher. Argentine crop problems may signal more export demand for U.S. supplies, traders said.

Trader's Highlight

DJI- NEW YORK, Feb 23 (Reuters) - Brent oil priced in euros hit a record high on Thursday on heightened tension between Iran and the West while U.S. stocks neared peaks not seen since before the 2008 collapse of Lehman Brothers.

The rise in Brent, the benchmark for European crude and most international oil trades, poses a new headache for cash-strapped Europe, still reeling from a two-year-old sovereign debt crisis.

German data helped the euro rise to its highest in 2-1/2 months against the U.S. dollar. The Ifo think tank survey of business sentiment rose to its strongest in seven months.

But forecasts for the euro zone economy underscored the pressures facing the region. The European Commission's half-yearly forecast showed output in the 17 nations sharing the euro will contract by 0.3 percent and the broader EU bloc will stagnate.

Economists worry that rising oil prices will undermine efforts to put the region on a stronger footing as well as dampen the outlook for the global economy.

Iran's stance has sparked fears that its confrontation with the West over its disputed nuclear program would escalate and affect oil flow from the Middle East.

"It's all about Iran. The inspectors leaving intensifies the concerns and backs up the Israeli argument that diplomacy will not work," said John Kilduff, partner at Again Capital LLC in New York.

Underpinning U.S. stocks, weekly jobless claims data added to signs of progress in the U.S. economy. Data showed U.S. first-time claims for unemployment benefits held steady at a four-year low of 351,000 last week.

The Dow Jones industrial average closed up 46.02 points, or 0.36 percent, at 12,984.69. The Standard & Poor's 500 Index ended up 5.80 points, or 0.43 percent, at 1,363.46. The Nasdaq Composite Index finished up 23.81 points, or 0.81 percent, at 2,956.98.

NYMEX-NEW YORK, Feb 23 (Reuters) - U.S. crude futures rose for a sixth straight session on Thursday as tensions surrounding Iran's nuclear program and the potential for supply disruption, along with a weaker dollar index, countered any pressure from
rising inventories.

After Iran did not grant the U.N.'s International Atomic Energy Agency access to areas targeted for inspection this week, fears of a confrontation with the West have been heightened.

Supreme Leader Ayatollah Ali Khamenei said Iran's nuclear policies would not change despite mounting international pressure.

The euro extended gains against the dollar and yen, hitting fresh 2-1/2 month and 3-1/2 month peaks, respectively, traders said.

The euro was bolstered by better-than-expected German business confidence data which offset a bleak economic forecast from the European Union.

U.S. crude oil inventories rose 1.63 million barrels last week, more than the 500,000 barrel build expected.

Gasoline stocks fell 649,000 barrels and distillate stocks fell 208,000 barrels. Gasoline inventories were expected to be down by only 100,000 barrels and distillates by 1.4 million barrels, a Reuters survey of analysts ahead of the weekly
inventory data showed.

On the New York Mercantile Exchange, April crude rose $1.55, or 1.46 percent, to settle at $107.83, having traded as low as $105.45 and extending gains to more than $2, above $108, in post-settlement trading.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher a weaker dollar and worries about South American crop problems that may signal more export demand for U.S. supplies, traders said.

Soymeal followed soybeans higher, but soyoil ended lower on profit-taking and meal/oil spreading.

Front-month March soybeans reached a five-month high at $12.80 a bushel, the highest spot soybean price since Sept 23, 2011, but pared gains by the close. Soybeans have finished higher in eight of the last nine sessions.

Argentina's Rosario grains exchange cut its estimate of the country's soy harvest to 44.5 million tonnes, down 5 million from its last monthly estimate, citing drought damage.

Weak dollar adds support, making dollar-backed soybeans more competitive. The dollar fell to a 10-week low against the euro as better-than-expected German data offset a dismal economic forecast from the European Commission.

FCPO- SINGAPORE, Feb 23 (Reuters) - Malaysian crude palm oil futures closed higher on Thursday although gains were limited by investor concern about slowing global growth that could curb commodity demand.

Prices rallied to new highs earlier this week as the second bailout deal for Greece boosted investor confidence, but worries have now set in on a longer-term growth outlook as fresh data showed the euro zone may slip into a recession.

Right now the market is tracking external markets and not so much on crude palm oil fundamentals, which are not too bullish or bearish," said James Ratnam, an analyst with TA Securities in Malaysia.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.7 percent to 3,272 ringgit ($1,086) per tonne. Prices hit a high of 3,294 ringgit on Wednesday, the highest since June 9 last year. Traded volumes were thin at 22,589 lots of 25 tonnes each, compared to the usual 25,000 lots.

Reuters analyst Wang Tao said prices will consolidate in a range of 3,244-3,292 ringgit per tonne based on technical analysis.

REGIONAL EQUITY- Feb 23 (Reuters) - Southeast Asian stock markets fell on Thursday on fears over rising oil prices and a possible recession in the euro zone with lingering concerns over Greek sovereign debt crisis still undermining the appetite for risky assets.

The region's markets, following others in Asia, fell for a second day, with MSCI's broadest index of Asia Pacific shares outside Japan <.MIAPJ0000PUS> down 0.5 percent down and the MSCI index for Southeast Asia <.MISU00000PUS> 0.3 percent weaker at
0852 GMT.

Singapore fell 0.9 percent for its lowest close since Feb. 10. Indonesia also lost 0.9 percent, to a one-week low, and had a $13.4 million foreign outflow.

Malaysia ended 0.3 percent down, but foreign investors bought a net $35 million of shares, data from the country's bourse showed.

In Singapore, disappointing earnings also hit the sentiment after Singapore's Neptune Orient Lines Ltd , the world's sixth largest container shipping firm, reported a larger-than-expected fourth quarter loss due to high fuel costs
and lower freight rates.

"Investors are getting more jittery, as we saw several corporate earnings from large blue chips that were quite disappointing," said Andrew Chow, head of research at UOB Kay Hian, citing results from palm oil firm Wilmar International Ltd on Wednesday and Neptune Orient.

Financials pulled down Jakarta and Kuala Lumpur, led by a 2.3 percent fall in Indonesia's largest lender Bank Mandiri and 1.1 percent loss for Malaysia's CIMB Group.

Analysts said the market will consolidate at a lower level said due to profit taking and concerns over the healthy recovery of the global economy.

Neptune closed 5.6 percent weaker after plummeting 11.2 percent in early trade, while Wilmar ended 1.2 percent down.

Trader's Highlight

DJI- NEW YORK, Feb 22 (Reuters) - Banks led U.S. stocks lower on Wednesday as the S&P 500 stalled near a 10-month-high after signs of weak European business activity
rekindled concerns about a recession overseas.

U.S. banks were the S&P 500's worst performing sector. Investors feared that weak euro zone growth would hamper countries dealing with heavy debt loads and the banks exposed to those debts.

"We're very concerned around the markedly deteriorating credit fundamentals in Europe," said Steven Baffico, chief executive officer at Four Wood Capital Partners in New York.

Data showing weakness in the euro zone services and manufacturing sectors overshadowed the day-old deal to bail out Greece.

The Dow Jones industrial average lost 27.02 points, or 0.21 percent, to 12,938.67. The S&P 500 Index dropped 4.55 points, or 0.33 percent, to 1,357.66. The Nasdaq Composite fell 15.40 points, or 0.52 percent, to 2,933.17.

NYMEX- NEW YORK, Feb 22 - U.S. crude edged up on Wednesday, extending gains to a fifth straight session, on worries that Iran's confrontation with the West would escalate after talks with U.N. nuclear inspectors failed.

The late recovery erased losses spurred by prospects of slower global economic growth and some profit-taking after signs of overbought conditions in NYMEX crude.

Doubts resurfaced about Greece's ability to carry out tough reform measures called for in a debt bailout, also helping pull prices down in early trading.

In post-settlement trading, U.S. crude fell back and losses increased after the industry group American Petroleum Institute reported that domestic crude stocks rose 3.6 million barrels last week, dwarfing the forecast in a Reuters poll for a 500,000
barrel build.

Heating oil futures pared gains as the API data showed a stock build of 630,000 barrels, against the forecast for a 1.4 million-barrel drawdown.

Gasoline futures also trimmed gains on API's report of a 314,000-barrel build. The forecast was for a 100,000 barrel decline.

Refinery utilization jumped 2.9 percentage points to 86.6 percent of capacity, the API said, handily beating the forecast for a 0.2 percentage point decline.

The U.S. Energy Information Administration will release its own inventory report at 11 a.m. EST (1600 GMT) on Thursday.

Both reports are delayed a day due to Monday's Presidents Day holiday.

On the New York Mercantile Exchange, crude for April delivery settled at $106.28 a barrel, up 3 cents, or 0.03 percent, marking the highest settlement for front-month crude since May 4, 2011, when prices ended at $109.24.

CBOT SOYBEANS, Soybean futures on the Chicago Board of Trade ended firm, erasing early losses as corn climbed to the day's highs toward the close and U.S. crude oil futures briefly turned positive.

Soybeans trailed gains in corn as traders unwound long soybean/short corn spreads.

Traders squaring positions ahead of USDA's annual Outlook Forum on Thursday and Friday. USDA's baseline projections earlier this month signaled a jump in U.S. corn ending stocks for 2012/13 and a drop in 2012/13 soybean stocks.

Forecasts for welcome rains in parts of South America hang over the market. Light showers moved across most of Argentina on Tuesday and minor amounts of rain fell in dry areas of southern Brazil. "There will be a few showers soon that will improve conditions in Santa Catarina and Parana in the south," said Don Keeney, meteorologist for MDA EarthSat Weather.
Keeney said the six- to 10-day outlook was for improved rainfall in the dry areas of Brazil's Rio Grande do Sul, extending into Paraguay. Recent rains improved Argentina's soy crop prospects; more rain needed in southern Brazil.

Sales of Brazil's 2011/12 soybean crop rose to 53 percent of total expected production, up from 51 percent a week earlier, analysts Celeres said. The firm said Brazil's soy harvest was 19 percent complete by Feb. 17, up from 11 percent a week earlier.

FCPO-SINGAPORE, Feb 22 (Reuters) - Malaysian crude palm oil futures ended lower on Wednesday as nervous investors booked profits after an upbeat demand outlook and stronger crude oil prices helped the edible oil scale eight-month highs earlier in
the session.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange eased 0.6 percent to close at 3,250 ringgit ($1,075) per tonne. Prices had earlier hit a high of 3,294 ringgit, the highest since June 9 last year.

Traded volumes stood at 23,723 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

Global markets eased slightly on Wednesday as China's manufacturing sector shrank for a fourth straight month, but crude palm oil rallied on stronger Malaysian exports.

Reuters analyst Wang Tao said a price of 3,292 ringgit per tonne remains intact for palm oil, as it is still firm on an uptrend.

Top producer Indonesia will export more palm oil to Pakistan, with volumes expected to more than quadruple to 800,000 tonnes over the next three years, said an executive at an Indonesian industry group.


Top producer Indonesia will export more palm oil to Pakistan, with volumes expected to more than quadruple to 800,000 tonnes over the next three years, said an executive at an Indonesian industry group.

REGIONAL EQUITY- Feb 22 (Reuters) - Southeast Asian stocks ended mostly lower on worries over the feasibility of the Greek deal and rising oil prices, while data showing a continuous contraction in China's factory sector kept investors cautious on Wednesday.

Benchmarks in Singapore, Indonesia, Malaysia and Thailand ended lower, while those in the Philippines and Vietnam rose.

HSBC's China flash purchasing managers index (PMI) data showed the factory sector shrinking for the fourth month in a row in February as export orders slumped. The index however rose to a four-month high of 49.7.

"Regional sentiment, Europe market are still down, indicating the Greece bailout is not enough to push up the market," said Teddy Dwitama an analyst at Jakarta-based OSK Nusadana Research.

Singapore, the region's second best performer after Vietnam this year, fell on weakness in commodities. Wilmar International Ltd fell 10.9 percent, while Noble Group Ltd lost 4.4 percent on worries over shrinking margins.

Wilmar, the world's largest listed palm oil firm posted a 57 percent jump in quarterly profit, but investors dumped shares on concerns about declining margins as the results disappointed analysts as earnings from its consumer products and palm oil businesses both fell by 12 percent despite higher sales and palm oil production volumes.

RTRS-INDONESIA'S CPO EXPORTS TO PAKISTAN TO RISE TO 800,000 T PER YEAR WITHIN 3 YEARS, VS 178,000 T LAST YEAR - INDUSTRY OFFICIAL

JAKARTA, Feb 21 (Reuters) - Pakistan's imports of palm oil from top producer Indonesia will more than quadruple to 800,000 tonnes over the next three years, an executive at an Indonesian industry group said on Tuesday.

Indonesia and Pakistan signed a preferential trade agreement in early February, which will result in Islamabad lowering its duty on crude palm oil. [ID:nL4E8D32Z3]

"We expect exports to Pakistan in 2012 to recover," Fadhil Hasan, executive director at the Indonesian Palm Oil Association (GAPKI), told Reuters.

"The highest level we had was in 2007 at 800,000 tonnes," he added. "Hopefully in three years, we can make up that level."

Pakistan imported 178,000 tonnes of Indonesian CPO last year, he said.

Currently, India and China buy the most CPO from Indonesia, with Europe in third place.

RTRS-Soyoil, palm oil prices to rise in 2012 -Oil World

HAMBURG, Feb 21 (Reuters) - Global soyoil and palm oil prices are likely to rise in 2012 with a looming poor South American soybean crop to provide upward momentum, Hamburg-based oilseeds analysts Oil World said on Tuesday.

"We expect vegetable oil prices to appreciate in coming months," it said. "The supply and demand balance is going to become tighter, mainly as a result of recent additional soybean crop losses in South America and smaller-than-expected world production and export supplies of soyoil."

"This will spill over to palm oil, pulling up prices in coming months, despite the seasonal recovery of palm oil production."

Global dependence on palm oil supplies will continue to rise in 2012, keeping exports high in both leading producers Malaysia and Indonesia, it said. Palm oil prices traditionally rise when Malaysian and Indonesian exports are strong.

Meanwhile, the global rise in palm oil production and export supplies is set to slow down considerably on the year in Apr./Sep. 2012, it said.

But a bearish surprise for the global edible oil market could come from unexpectedly high sunflower seed crops in Ukraine and Russia and so larger supplies of sunoil, it said.

The especially cold east European winter means millions of hectares of crops will have to be replanted and sunflower seed will be a major choice, it said.

Russia and Ukraine could together harvest 17.5-19 million tonnes of sunflower seed in 2012 against 18.4 million in 2011, Oil World said.

RTRS-Oil World says it may cut Brazil soy crop forecast

HAMBURG, Feb 21 (Reuters) - Hamburg-based oilseeds analysts Oil World said on Tuesday it may again cut its forecast of Brazil's 2012 soybean crop because of continued poor weather and warned a global soybean production deficit is looming because of poor South American harvests.

"The total Brazilian soybean crop could turn out below our latest estimate of 69.5 million tonnes," it said.

Oil World had only made the forecast on Feb. 14, cutting the outlook from 70 million tonnes estimated on Jan. 31 and 72.8 million it forecast in December. This would be well down from the 75.3 million tonnes of soybeans Brazil harvested in 2011.

Concern about deteriorating South American soybean crop prospects after dry weather supported global soybean prices in the past week. [ID:nL4E8DE2OY] The United States is the world's largest soybean exporter, followed by Brazil in second place and Argentina in third position.

U.S. analyst Michael Cordonnier lowered his Brazilian soybean estimate by a million tonnes on Feb. 14 to 69.0 million tonnes, 3 million below the U.S. Department of Agriculture's current forecast. The official Brazilian estimate on Feb. 9 was 69.23 million tonnes.

Trader's Highlight

DJI- NEW YORK, Feb 21 (Reuters) - U.S. stocks ended little changed on Tuesday, paring gains after the Dow topped 13,000 for the first time since May 2008, and as higher oil prices damped prospects for the economy.

Greece's securing a bailout to avoid a disorderly default provided some support to stocks, but investors said the news had mostly been priced in to the market.

Fresh highs in oil prices gave investors a reason to sell. U.S. crude futures rose 2.5 percent to a nine-month high of $105.84 a barrel on Iran supply worries.

The Dow Jones industrial average <.DJI> finished up 15.82 points, or 0.12 percent, at 12,965.69. The Standard & Poor's 500 Index <.SPX> was up 0.98 point, or 0.07 percent, at 1,362.21. The Nasdaq Composite Index <.IXIC> was down 3.21 points, or 0.11 percent, at 2,948.57.

NYMEX- NEW YORK, Feb 21 - U.S. crude futures rose for the fourth straight session on Tuesday and closed at their highest levels in nine months as Iran repeated a threat of pre-emptive strikes against those it considered enemies and after Greece received a second debt bailout.

Iran's top consumers in Asia said they would reduce their purchases of Iranian oil as it was getting more difficult to do business with the Islamic Republic due to U.S. sanctions and an impending ban on Iranian oil by the European Union by July.

Euro zone financial ministers agreed to grant Greece a 130-billion-euro debt ($172 billion) rescue to avert a chaotic default, pushing the euro near a two-week high against the dollar. That helped improve risk appetite for oil and other commodities.

As the day's trading drew to a close, however, the euro ended flat against the dollar as investors weighed the hurdles that Greece must overcome to carry out the tough conditions in the bailout package.

Brent's premium against U.S. crude narrowed to below $16, from as much as $18 last week, on news that Enterprise Products had begun purging the Seaway pipeline ahead of a reversal that will move crude out of the glutted Midwest and into the U.S. Gulf Coast refinery row. Analysts said that could bring U.S. crude futures closer to benchmark Brent. [ID:nL2E8Dl5M5]

Gasoline futures ended at their highest level since May, lifted by the idling of BP Plc's Cherry Point, Washington, refinery on Friday due to a fire.

Traders will begin weighing inventory forecasts on how U.S. crude and refined product stockpiles shifted last week. Industry and government reports are delayed a day this week due to Monday's Presidents Day holiday.

A preliminary Reuters poll forecast that in the week to Feb. 17 domestic crude stocks fell 400,000 barrels, distillates stocks dropped 1.1 million barrels and gasoline stocks rose 300,000 barrels. Refinery runs were projected to have dipped 0.3 percentage point.

On the New York Mercantile Exchange, crude for March delivery settled at $105.84 a barrel, gaining $2.60, or 2.52 percent. It was the highest settlement since May 4, when front-month NYMEX crude closed at $109.24.

CBOT SOYBEANS, Soybean futures at the Chicago Board of Trade ended firm on export demand for U.S. soybeans, worries about South American production and inter-market spreading against corn, traders said.

Soyoil gained against soymeal on oil/meal spreads.

Traders bought soybeans and sold corn on spreads ahead of USDA's annual Outlook Forum on Thursday and Friday. USDA earlier this month signaled a jump in U.S. corn ending stocks for 2012/13 and a drop in 2012/13 soybean stocks.

Front-month soybeans hit a near five-month high at $12.76 a bushel but closed with modest gains following a choppy session.

FCPO-SINGAPORE, Feb 21 (Reuters) - Malaysian crude palm oil futures ended up on Tuesday after touching an eight-month high the previous day, supported by a Greek bailout deal and stronger demand prospects indicated by Malaysian export trends.

Euro zone finance ministers struck a deal on Tuesday for a second bailout programme for Greece, providing temporary relief and lifting investor sentiment.

Demand prospects for the tropical oil were also looking up as latest data indicated an improvement in the pace of export.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.7 percent to close at 3,268 ringgit ($1,083) per tonne. Prices hit a high of 3,276 ringgit on Monday, the highest since June last year. Trading was active as volumes stood at 28,368 lots of 25 tonnes each, compared to the usual 25,000 lots.

Reuters analyst Wang Tao said a bullish target at 3,322 ringgit has been modified to 3,292 ringgit for palm oil due to a retracement from the Monday high of 3,276 ringgit.

REGIONAL MARKET- Feb 21 (Reuters) - Most Southeast Asian stock markets edged up on Tuesday as a largely priced-in package to bail out Greece gave a small boost, but concerns that the deal may solve the crisis only in the short term kept riskier assets across the region subdued.

Euro zone finance ministers sealed a $172 billion second bailout for debt-laden Greece on Tuesday that will resolve its immediate financing needs.

In Singapore, a 2.3 percent gain by property developer CapitaLand Ltd and 1.6 percent rise for United Overseas Bank Ltd drove the overall index.

In Kuala Lumpur, Maxis Bhd jumped 2.9 percent after it obtained the Securities Commission's approval for the proposed issuance of a 2.45 billion Malaysian ringgit ($811.06million) sukuk.

RTRS-China acts to crank up credit as lending, economy slow

SHANGHAI/BEIJING, Feb 19 (Reuters) - China's central bank cut the amount of cash banks must hold in reserves on Saturday, boosting lending capacity by an estimated 350-400 billion yuan ($55.6-$63.5 billion) in a bid to crank up credit creation as the world's second-biggest economy faces a fifth successive quarter of slowing growth.

The People's Bank of China (PBOC) is on the course of gentle policy easing to cushion the world's fastest-growing major economy against stiff global headwinds as Europe's debt crisis grinds on, although it has been treading warily.

The cut, announced late evening, is set to boost the confidence of domestic stock investors, who have been eagerly awaiting clear signs of an easing of monetary policy.

"It's a very positive move for the stock market, and it will create a bullish stock market," Li Daxiao, the research head of Shenzhen-based Yingda Securities, said in an online note.

The PBOC cut big banks' reserve requirement ratio (RRR) by 50 basis points to 20.5 percent, effective from next Friday, after repeatedly defying market expectations for such a move after it first cut the ratio last November.

China's economy is likely to slow to an annual growth rate of 8.2 percent in the first quarter from 8.9 percent in the previous quarter, according to the latest Reuters poll.

Data for January came in below market expectations, with exports contracting 0.5 percent from a year earlier and money supply growth falling to 12.4 percent from the previous month's 13.6 percent, which analysts said argued for more easing.

"The growth implications of the below-normal lending in January are dire, should that lending pace be continued," said Paul Markowski, President of New York-based MES Advisers, a long-time investment adviser to China's monetary authorities, who calculates lending was on a 7.9 percent growth path.

Trader's Highlight

FCPO- SINGAPORE, Feb 20 (Reuters) - Malaysian crude palm oil futures closed off an eight-month high on Monday, as China's policy easing buoyed sentiment, while an improvement in demand prospects and technical outlook also provided support.

Major palm oil consumer China cut its reserve requirement ratio on Saturday for the first time this year in a move to boost liquidity and stimulate economic growth, improving demand prospects for the edible oil.

Hopes that Greece will be able to secure a second bailout package on Monday also lifted the palm oil futures market, which has gained 2.2 percent so far this year.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange inched up 0.1 percent to 3,245 ringgit ($1,075) per tonne, but off the day's high of 3,276 ringgit, a level last seen on June 15. Traded volumes stood at 21,096 lots of 25 tonnes each, slightly thinner than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 20 (Reuters) - Philippine shares climbed 1.3 percent to their all-time highs, and other Southeast Asian stock markets posted modest gains on Monday, helped by selective buying in blue chip firms as commodities-related shares gained along with high oil prices.

Across the region, investor appetite for riskier assets was boosted by a surprise policy easing by China and expectations that Greece would secure a second bailout deal.

MSCI's broadest index of Asia Pacific shares outside Japan was trading up 0.68 percent by 0944 GMT while the MSCI index for Southeast Asia <.MISU00000PUS>, made up of selected stocks, was up 0.9 percent.

Commodities-related shares led gainers in the region along with U.S. crude prices. Singapore's Noble Group rose 1 percent while Malaysia's Sime Darby was up 0.4 percent and Indonesia's Bumi Resources gained 1 percent.

In Singapore, property firms with large exposure to China were among the biggest gainers. CapitaLand Ltd rose 3.5 percent while its shopping mall unit CapitaMalls Asia added 4.8 percent.

RTRS-Argentine gov't sees soy crop at maximum 45 mln tonnes

BUENOS AIRES, Feb 16 (Reuters) - Argentina's soy harvest could be as small as 43.5 million tonnes due to drought damage, the government said in its first official estimate on Thursday, lower than many private forecasts.

Weeks of dry weather dimmed prospects for a bumper 2011/12 harvest in the world's No. 3 soybean exporter, which is also the top supplier of soyoil and soymeal, though recent rains have brightened the outlook - especially for later-seeded crops.

The Agriculture Ministry set 45 million tonnes as the top end of its forecast range because of "a decline in final yields, although not as big as initially expected."

The ministry said just 1 percent of early-seeded soy was in very good condition, although 48 percent was in good shape. That proportion was slightly higher for late-sown crops.

Corn, which is planted earlier than soy, was even harder hit by weeks of dry weather that lasted until mid-January, hampering plants as they passed through key yield-defining growth stages.

In its first official forecast, the ministry estimated corn production at between 20.5 million tonnes and 22 million tonnes.

"Harvesting has started of the first fields in the north of the country," the ministry said in its monthly crop report.

"Yields have been very patchy, but consistently below those of last season."

Argentina produced 48.9 million tonnes of soy and 22.9 million tonnes of corn in the 2010/11 crop year, according to official figures.

Trader's Highlight

DJI- NEW YORK, Feb 16 (Reuters) - The S&P 500 hit a nine-month high on Thursday, fueled by strong U.S. economic data and increased hopes for a deal on a Greek bailout next week.

The benchmark index posted its strongest percentage gain in two weeks, bouncing back from several sessions of back-and-forth action.

Sectors sensitive to economic growth paced the market, with technology, materials and financials leading on a day when all 10 S&P sectors finished higher.

Even with Thursday's gains, equity indexes remained in tight ranges, with the 1,360 barrier that investors cited for the S&P 500 as an impediment to more gains.

The Dow Jones industrial average gained 123.21 points, or 0.96 percent, to 12,904.16. The Standard & Poor's 500 Index climbed 14.82 points, or 1.10 percent, to 1,358.05. The Nasdaq Composite Index rose 44.02 points, or 1.51 percent, to 2,959.85.

NYMEX-NEW YORK, Feb. 16 (Reuters) - U.S. crude futures ended higher for a second straight day on Thursday on worries about Iran supply disruption and hopes that there may be an agreement next week on a Greece debt bailout.

Crude futures also got a boost from the euro's rebound against the dollar on optimism about Greece, which happened around midday, and from strong gasoline futures, which hit 5-1/2 month highs.

Greece expects to get approval from euro zone finance ministers on Monday to begin a debt swap scheme with private bondholders, moving it closer to averting a chaotic default.

In early trading, prices fell after ratings agency Moody's warned it may cut the credit ratings of 17 global and 114 European financial institutions, in yet another sign that the impact of the euro zone debt crisis was spreading across the global financial system.

Iran has told world powers it wants to resume long-stalled talks with "new initiatives" and France said it might be open to addressing suspicions about Tehran's nuclear program.

But Iran's ambassador to Moscow said Tehran would accept "no preliminary conditions" for progress in any further talks.

On the New York Mercantile Exchange, crude for March delivery settled at $102.31 a barrel, gaining 51 cents, the highest close since Jan. 4, when front-month crude ended at $103.22.

CBOT SOYBEANS, Soybean futures on the Chicago Board of Trade closed lower on
Thursday, halting a four-day rally on technical selling including profit-taking after the market set a near four-month high this week, traders said.

Market under pressure as traders unwound long soybean/short corn spreads.

Soymeal and soyoil futures followed soybeans lower.

USDA reported export sales of U.S. soybeans in the latest week at 614,700 tonnes (old- and new-crop years combined), near the low end of trade estimates for 600,000 to 750,000 tonnes.

USDA showed weekly U.S. soymeal sales at 80,000 tonnes, below trade estimates, and soyoil sales at 21,100 tonnes, above trade estimates.

FCPO- SINGAPORE, Feb 16 (Reuters) - Malaysian crude palm oil futures slipped on Thursday as a delay in a second bailout package for Greece raised investors' concerns, although losses were limited thanks to dry weather fears in soy-producing South America.

Prospects of lower supply in soybean due to dry weather in Brazil provided some support for palm oil that competes with soyoil for use in biofuels and food.

Slowing exports for Malaysian palm oil and uncertainty in Europe, a major palm oil consumer, has weighed on the futures market that has edged higher so far this year.

"The recent exports data showed that exports for the first 15 days are not that strong but I suspect that this could be due to the delay in the issuance of tax-free crude palm oil quota, "said Ivy Ng, an analyst with Malaysia's CIMB Investment Bank.

"Exports should recover as we go into later part of the month, or if not in March," she added.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange eased 0.4 percent to close at 3,189 ringgit ($1,043) per tonne. Prices hit a high of 3,213 ringgit on Wednesday, a level last seen on Jan. 12. Traded volumes stood at 28,778 lots of 25 tonnes each, higher than the usual 25,000 lots for the first time this week.

REGIONAL EQUITY- Feb 16 (Reuters) - Singapore stocks retreated from a six-month high on Thursday while Indonesia slipped into negative territory for the month as Southeast Asia followed larger regional markets lower amid doubts about a further bailout for Greece.

Broad-based profit-taking was seen across most markets, particularly in resources and materials stocks that have been significant outperformers this year.

Singapore-listed commodities trading house Noble Group fell 4.3 percent after it hit a three-month high the previous session.

Elsewhere in the region, Malaysia's stock market <.KLSE>, considered the most defensive in the region due to low foreign ownership and reliance on domestic consumption, fell 0.7percent.

RTRS-Moody's may downgrade 114 banks from 16 European nations

Feb 16 (Reuters) - Moody's said it was taking ratings actions on 114 financial institutions in 16 European countries to reflect the impact of the continent's debt crisis and the deteriorating creditworthiness of governments in the region.

"Moody's expects that once ratings will fully reflect the effects of currently foreseen adverse credit drivers," the agency said.

Moody's said that for 99 financial institutions, the standalone credit assessments have been placed on review for downgrade. For 109 institutions, the long-term debt and deposit ratings have been placed on review for downgrade.

Feb 16 (Reuters) - Moody's Investor service warned on Thursday it could downgrade the credit ratings of 17 global banks and securities firms due to more fragile funding conditions, increased regulatory burdens and a more difficult operation environment.

Moody's said it is reviewing the long-term ratings and standalone credit assessments of Bank of America , Citigroup , Goldman Sachs , JPMorgan Chase , Morgan Stanley and Royal Bank of Canada .

The long-term ratings and standalone credit review of European banks include Barclays , BNP Paribas , Credit Agricole , Deutsche Bank , HSBC , Royal Bank of Scotland , Societe Generale .

Moody's said it was extending the reviews of the long-term ratings and standalone credit assessments of Credit Suisse , Macquarie , Nomura <8604.T> and UBS .

Trader's Highlight

DJI- NEW YORK, Feb 15 (Reuters) - U.S. stocks fell on Wednesday for the third session in four, with market direction largely dictated by the swings in shares of
Apple, the largest company in the world.

The S&P 500 appeared set for a strong move off a nine-month high as Apple Inc shares gained 3 percent in early trading, helped by Tuesday's disclosures that prominent hedge-fund managers had been buying the stock.

But Apple, the largest company by market capitalization, turned negative around midday and closed down 2.3 percent to $497.67, quickly reversing the Nasdaq index's advance. The stock had climbed as high as $526.29 during the session.

The Dow Jones industrial average dropped 97.33 points, or 0.76 percent, to 12,780.95. The Standard & Poor's 500 Index lost 7.27 points, or 0.54 percent, to 1,343.23. The Nasdaq Composite Index fell 16.00 points, or 0.55 percent, to 2,915.83.

NYMEX- NEW YORK, Feb 15 (Reuters) - U.S. crude futures rose on Wednesday on fears of supply disruptions from Iran and other producers and U.S. government data showing a small drop in inventories.

U.S. crude stockpiles fell 171,000 barrels, the U.S. Energy Information Administration said in a report, against a forecast for a 1.5 million barrel rise in supplies.

Gasoline stocks rose 400,000 barrels and distillate stocks fell 2.87 million barrels, the EIA report said.

Gasoline stocks had been expected to rise 800,000 barrels, and distillate stockpiles fall 1.1 million barrels, a Reuters survey of analysts ahead of the weekly inventory report.

Crude stocks held at the Cushing, Oklahoma, delivery point for the NYMEX light sweet crude contract, rose to their highest level since September, posting a 2 million-barrel build, the biggest weekly increase since December 2009.

Iran's Oil Ministry denied state media reports on the Islamic state stopping its crude exports to six European countries.

The initial report by Iran's state media had sent crude prices surging. The European Union has slated for an embargo of Iran's crude as part of the West's tightening sanctions over Tehran's controversial nuclear program.

On the New York Mercantile Exchange, March crude rose $1.06, or 1.05 percent, to settle at $101.80 a barrel, having traded from $100.61 to $102.54, highest price
reached intraday since Jan. 12.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed higher for a fourth consecutive session on Wednesday, hovering near a four-month high on export demand for U.S. soybeans and concerns about crop weather in Brazil, traders said.

USDA confirmed sales of 116,000 tonnes of U.S. soybeans to China for delivery in 2011/12. The announcement followed confirmation of U.S. soybean sales to unknown destinations on Monday and Tuesday.

Trade expects announcement of U.S. soy purchase agreements during a Chinese trade delegation's visit to Iowa on Wednesday afternoon.

Soybeans gaining relative to CBOT corn this week on worries that U.S. farmers might not plant enough acres to soybeans this spring to meet global demand.

FCPO-SINGAPORE, Feb 15 (Reuters) - Malaysian crude palm oil futures rose to their highest level in over a month, boosted by dry weather concerns in South America, but the prospect of slowing demand due to Europe's economic woes led the contract to
close lower.

Hamburg-based oilseeds analyst Oil World cut its forecast for the 2012 soybean crops in drought-hit Brazil and Paraguay, and prospects of lower production supported palm oil prices, which tracked soybean oil closely.

But export trends in No.2 producer Malaysia pointed to declining demand for the vegetable oil and investors were wary that an uncertain outlook for Greece could further cut commodity consumption in Europe.

Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange eased 0.3 percent to close at 3,197 ringgit ($1,054) per tonne. Prices hit an intraday high of 3,213 ringgit, a level last seen on Jan. 12. Traded volumes stood at 23,479 lots of 25 tonnes each, slightly thinner than the usual 25,000 lots.

REGIONAL EQUITY- Feb 15 (Reuters) - Stocks in Singapore and Thailand joined those in East Asian markets in rising on Wednesday in the belief central banks will boost economies through cash injections, though other Southeast Asian bourses slipped.

Indonesia was an underperformer, ending flat on the day, as funds balanced portfolios and rotated out of over-owned positions in favour of some of last year's laggards.

Investors in Singapore piled into shares of companies that were reporting strong earnings such as offshore vessel builder STX OSV Holdings Ltd. It soared 12 percent to a record high after reporting its fourth quarter net profit
doubled.

Malaysian stocks, considered the most defensive among regional markets due to its reliance on the domestic consumption and low foreign ownership, fell 0.3 percent
extending their underperformance this year.

RTRS- INDIA'S PEC TENDERS TO BUY 23,400 T RBD PALM OLEIN VEGETABLE OIL -TRADE

HAMBURG, Feb 14 (Reuters) - Indian state trading company PEC has issued an international tender to buy 23,400 tonnes of palm olein vegetable oil, European traders said on Tuesday.

The refined, bleached and deodorised (RBD) oil was for shipment between Mar. 1-31 in three consignments.

The oil should come from Indonesia or Malaysia. Bidding deadline is Friday, Feb. 17.

RTRS-Eurogroup drops face-to-face bailout talks as Greeks argue

BRUSSELS/ATHENS, Feb 14 (Reuters) - Euro zone finance ministers dropped plans on Tuesday for a special face-to-face meeting on Greece's new international bailout, saying political party chiefs in Athens had failed to provide the required commitment to reform.

A source familiar with negotiations on Greece's 130 billion euro rescue also said conservative leader Antonis Samaras had yet to sign a commitment to implement the deeply unpopular package - a condition set by the EU/IMF lenders who are weary of broken Greek promises on economic reform and budget cuts.

Ministers in the Eurogroup had been expected to gather in Brussels on Wednesday for a meeting which, if all had gone to plan, would have approved the bailout and saved Greece from a messy bankruptcy next month.

However, with the European Union's patience with Greece close to breaking point, Eurogroup Chairman Jean-Claude Juncker said the ministers would hold only a telephone conference call before a regular meeting already scheduled for Feb. 20.

RTRS- OIL WORLD CUTS BRAZILIAN 2012 SOYBEAN CROP FORECAST BY 0.5 MLN T, PARAGUAY'S BY 1.4 MLN T

HAMBURG, Feb 14 (Reuters) - German Oilseeds analyst Oil World has cut its forecast of 2012 soybean crops in Brazil and Paraguay following drought in the two countries but raised its forecast for Argentina, it said on Tuesday.

Oil World said it had cut its forecast of Brazil's 2012 soybean crop to 69.5 million tonnes from 70 million tonnes estimated on Jan. 31 and 72.8 million it forecast in December.

Lack of rain means Brazil's crop would be well down on the 75.3 million tonnes it harvested in 2011.

Oil World also cut its forecast of Paraguay's soybean crop to 4.6 million tonnes from 6.0 estimated on Jan. 31 and 8.3 million tonnes harvested last year. The forecast cut was also made because of drought.

It raised its forecast of Argentina's 2012 soybean crop to 47.0 million tonnes from 46.5 million tonnes forecast on Jan. 31 and 52.0 million tonnes forecast in December.

This would still be down on the 49.2 million tonnes harvested in 2011 in Argentina.
Recent rain had helped Argentine soybeans, Oil World said.

The United States is the world's largest soybean exporter, Brazil the second and Argentine the third. Paraguay is a smaller exporter but its volumes are important to world markets.

Trader's Highlight

DJI- NEW YORK, Feb 14 (Reuters) - U.S. stocks erased losses to end little changed on Tuesday after a Greek government source said the conservative party leader was expected to deliver a letter of commitment to the country's international lenders.

A sign of Greece's commitment to the tough austerity measures demanded by euro zone leaders was a catalyst for buyers to jump into the stock market late in the session.

Euro zone finance ministers are due to hold a telephone conference call on Wednesday about a 130 billion euros bailout to avert a chaotic Greek default.

The Dow Jones industrial average gained 4.24 points, or 0.03 percent, to 12,878.28. The Standard & Poor's 500 Index dropped 1.27 points, or 0.09 percent, to 1,350.50. The Nasdaq Composite Index edged up 0.44 points, or 0.02 percent, to 2,931.83.

NYMEX- NEW YORK, Feb 14 (Reuters) - U.S. crude oil futures fell on Tuesday on weaker-than-expected U.S. retail sales for January, Greek debt worries and concerns about Europe's economy after Moody's warned it may cut the triple-A ratings of France, Britain and Austria.

Losses were limited by news that a Canadian oilsands processing plant that sends output to the U.S. Midwest would be shut longer than initially thought. Rising geopolitical tensions in the Middle East also lent underlying support.

In post-settlement trading, NYMEX crude futures shifted slightly higher. But after weekly inventory data from the American Petroleum Institute showed that domestic crude stocks rose more than forecast, prices dipped to negative territory before heading to just above flat.

On the New York Mercantile Exchange, crude for March delivery settled at $100.74 a barrel, dipping 17 cents,or 0.17 percent, after trading between $100.28 to $101.84.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade rose for a third straight session, nearing a four-month high on dry weather stressing crops in southern Brazil and signs of fresh U.S. export demand, traders said.

March soybeans reached a peak of $12.61-3/4, the highest spot price on the continuous chart since Oct. 17, 2011.

Market shrugs off pressure from a rally in the dollar and declines on Wall Street as disappointing January U.S. retail sales data curbed investors' appetite for risky assets.

USDA confirmed sales of 283,000 tonnes of U.S. soybeans to unknown destinations, including 215,000 for 2011/12 delivery and 68,000 for 2012/13. The report followed sales of 120,000 tonnes of U.S. soy to unknown destinations announced on Monday.

FCPO- SINGAPORE, Feb 14 (Reuters) - Malaysian crude palm oil futures rose to more-than-a-month high on Tuesday, tracking a rally in U.S. soybeans on investor concern that hot, dry weather in South America could hurt production.

A weaker ringgit currency against the U.S. dollar also raised demand prospects for crude palm oil as the ringgit-priced feedstock now seems cheaper, helping the vegetable oil erase earlier losses to trade marginally higher this year.

"External factors are still uncertain and we will have to look at export numbers to see if the market will breach 3,200 ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur, referring to Malaysian export data for Feb. 1-15 which will be released on Wednesday.

Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange settled up 1.2 percent to 3,205 ringgit ($1,053), a level last seen on Jan. 12. Traded volumes stood at 25,490 lots of 25 tonnes each, slightly higher than the usual 25,000 lots.

REGIONAL EQUITY- Feb 14 (Reuters) - Stocks in Singapore and Malaysia inched up while Indonesian and Philippine shares retreated on Tuesday as market players took profits amid concerns about the sovereign debt crisis in Europe.

Investors in the region were cautious after Moody's warned it could downgrade top-rated sovereigns including Britain, reminding investors that Europe is still deeply mired in a debt crisis despite Athens' steps to avoid a disorderly default.

Blue chips that had led recent gains across the region such as Singapore Telecommunications Ltd , Thai Oil Pcl and Philippine Long Distance Telephone Co were among the stocks that fell on Tuesday.

RTRS-Early glimpse of US crops may get second look

Feb 13 (Reuters) - A U.S. government report offering the first look at this year's crop s is expected to show farmers in the United States planting the largest area with corn since World War Two amid high prices and favorable weather.

The U.S. Agriculture Department baseline report, due out midday Monday, has historically had little impact since it is based on data from November and not on surveys from farmers that will be used for the more authoritative estimates issued in March.

The baseline projections will be updated by the USDA with more current data on prices and economic conditions at its annual Outlook conference on Feb. 23 and 24.

Grain traders are keeping an eye on the baseline report this year -- not because they expect it to be a better yardstick for the crop, but because they believe hedge funds and other new investors may still use it as a trading point.

Forecasts for big crops of corn, wheat and soybeans in the world's top food producing nation will help bolster expectations that global grain stocks will rise this year and quell any inflationary spike in prices .

Farmers are expected to plant 94.2 million acres with corn because of highly profitable corn prices and due to a mild and dry winter likely spurring an early sowing season. Soybean plantings are expected to rise slightly from last year.

RTRS-Greece still to convince Europe over rescue deal

ATHENS/BRUSSELS, Feb 13 (Reuters) - Europe gave Greece until Wednesday to convince sceptical international creditors that it would stick to the punishing terms of a multi-billion-euro rescue package, endorsed by parliament as rioters torched downtown Athens.

Lawmakers backed drastic cuts in wages, pensions and jobs on Sunday as the price of a 130 billion euro ($170 billion) bailout by the European Union and International Monetary Fund to avert a messy default that would send shockwaves through the euro zone.

Scenes of running battles between police and rioters and flames engulfing cinemas, shops and banks underscored a sense of deepening turmoil in the country after more than four years of recession and two of punishing austerity.

The EU warned on Monday that the consequences of failure would be "devastating".

It gave the fragile ruling coalition of Prime Minister Lucas Papademos until Wednesday, when euro zone finance ministers are expected to meet, to specify how 325 million euros of the 3.3 billion euros demanded in budget savings will be achieved.

By the same deadline, Greek political leaders must give a written commitment to implement the terms of the deal, a Greek government spokesman said, reflecting fatigue among EU leaders who say they have heard enough broken promises.

Trader's Highlight

DJI-NEW YORK, Feb 13 (Reuters) - World stocks rose on Monday after Greece's parliament passed drastic austerity measures to avoid a chaotic debt default, but doubts over whether Athens will be able to live up to its promises and secure a new rescue package killed an initial rally in the euro.

U.S. crude oil prices closed more than 2 percent higher after Greece on Sunday approved sweeping budget cuts in exchange for a 130 billion euro bailout from the European Union and the International Monetary Fund.

But concerns emerged over whether the country will be able to fulfill its tough austerity promises, keeping demand steady for safe-haven U.S. Treasuries and driving the euro lower.

Unrest in the streets of Athens and a voting rebellion by lawmakers of the ruling coalition suggested Greece may be on the brink of massive social unrest, which would make it difficult for Athens to stick to the rescue terms.

The Dow Jones industrial average <.DJI> ended 72.81 points, or 0.57 percent, higher at 12,874.04, while the Standard & Poor's 500 Index <.SPX> rose 9.13 points, or 0.68 percent, to 1,351.77. The Nasdaq Composite Index <.IXIC> gained 27.51 points, or 0.95 percent, to 2,931.39.

NYMEX- NEW YORK, Feb 10 (Reuters) - U.S. crude oil futures ended higher on Monday, posting its biggest one-day gain in six weeks, a day after Greece's parliament adopted austerity measures the country needs to secure a second debt bailout package and avoid ruinous default.

Trading on the New York Mercantile Exchange's Globex electronic platform was marred by a halt shortly after 2 p.m. EST (2000 GMT) due to technical problems. Globex trading resumed at 3:15 p.m.

While Greece's action somewhat calmed markets worried about the economic health of the euro zone, it sparked unrest in the streets in Athens and a voting rebellion by lawmakers of its ruling coalition.

Europe gave Greece until Wednesday to convince international creditors that it would stick to the highly unpopular terms of the rescue package.

Middle East tensions were also supportive for crude futures.

On the New York Mercantile Exchange, crude for March delivery settled at $100.91 a barrel, gaining $2.24, or 2.27 percent, the biggest one-day percentage gain since Jan. 3. The contract fell $1.17 on Friday.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher as the dollar fell, encouraging investors to buy risky assets including grains and crude oil, and as worrisome crop weather in Brazil lent further support.

Buy-stops triggered in the closing minutes as March soybeans broke through resistance at $12.50 a bushel and climbed to $12.54, highest spot soy price since Oct. 19, 2011.

Heavy trade in soybean futures with volume roughly 45 percent above the prior 30-day average.

The dollar eased after Greece's parliament approved strict financial reforms needed to obtain an international bailout package. But the government remains under pressure to convince a skeptical euro zone that it will abide by the terms of the
package.

FCPO- SINGAPORE, Feb 13 (Reuters) - Malaysian crude palm oil futures rose to near three-week high on Monday after Greecem passed an unpopular austerity bill that could help avoid a messy default.

The Greek parliament approved on Monday the deeply unpopular austerity bill, injecting some much-needed optimism into the market and helping to lift financial markets, including palm oil that has lost 0.2 percent so far this year.

But market players were also concerned about prospects of slowing demand for palm oil especially as the tropical oil enters a period of recovering production.

Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange were up 1.2 percent to close at 3,168 ringgit ($1,048) per tonne. Prices earlier hit an intraday high of 3,171 ringgit, a level last seen since Jan. 25. Traded volumes stood at 22,750 lots of 25 tonnes each, slightly thinner than the usual 25,000 lots.

REGIONAL EQUITY- Feb 13 (Reuters) - Most Southeast Asian stock markets posted limited gains on Monday following the passage of Greece's austerity bill and amid selective buying of dividend yielding shares and stocks that have strong earnings prospects.

Market players picked bluechips such as Singapore Telecommunications Ltd, Indonesia's PT Astra International Tbk and Philippine Long Distance Telephone Co , among last week's beaten-down stocks.

Greece approved a deeply unpopular austerity bill to help secure a second bailout, even as riots in central Athens and violence across the country raised doubts about implementation of the approved spending cuts.

Investors appeared reluctant to buy riskier assets, awaiting further steps needed before the shadow of a debt default can be lifted. Regional indexes were largely capped in range, with turnover for most markets falling short of a 30-day average.

Some brokers said markets remained hopeful the Greece deal could be wrapped up successfully.
Singapore Telecommunications gained 1.95 percent after it comforted investors by reiterating a forecast for low single-digit full-year revenue growth in Singapore and stable dividends from its associate firms.

RTRS-Malaysia's Jan palm oil stocks fall to five-month low

KUALA LUMPUR, Feb 10 (Reuters) - Malaysia's January palm oil stocks slipped to a five-month low as a decline in production outpaced a drop in exports, industry regulator Malaysian Palm Oil Board said on Friday.

Stocks in the world's No. 2 producer of the edible oil fell 2.5 percent to 2.0 million tonnes from December last year, almost matching market expectations of a 2.2 percent drop.

The still-high inventories can potentially shore up global edible oil supply in the wake of erratic weather affecting soy crops in south America. Benchmark palm oil futures <0#FCPO:> on the Bursa Malaysia Derivatives Exchange may come under some pressure after losing 0.8 percent at midday ahead of the data release.

RTRS-INDIA'S JAN PALM OIL IMPORTS SEEN UP 3.1 PCT VS DEC, SOYOIL IMPORTS SEEN UP

NEW DELHI, Feb 10 (Reuters) - India's palm oil imports may have risen in January over the previous month as domestic supplies run out, a Reuters survey showed on Friday, but the imports could fall this month with start of the rapeseed harvest season.

Palm oil imports -- the bulk of India's edible oil purchases -- rose 3.1 percent last month to 569,750 tonnes, according to the survey of eight traders, with soyoil imports seen up 360.3 percent to 34,000 tonnes over December.

India mainly buys palm oils from Indonesia and Malaysia, and small quantities of soyoil from Argentina and Brazil. About half of India's 15-16 million tonnes of edible oils demand is met through imports.

The survey suggested total vegetable oil imports, including non-edible oils, would rise 6.6 percent in January to 714,375 tonnes from the previous month.

RTRS-IRAN HAS NOT APPROACHED MALAYSIA FOR BARTER DEALS TO SAFEGUARD PALM OIL SUPPLIES-MALAYSIA GOV'T SOURCES

KUALA LUMPUR, Feb 10 (Reuters) - Iran has not approached Malaysia for barter deals to keep its palm oil supplies flowing as Western financial sanctions hurt it ability to pay for imported food staples, two Malaysian government sources told Reuters on Friday.

One of the sources said Malaysia is no longer keen to do barter trades after facing problems in a deal with North Korea in 2009 when $20 million worth of palm oil was to be exchanged for cash and fertiliser components.

"No matter how you do it, these countries don't have enough to barter. So Malaysia is not going to do barter trades for the time being," said the source, who had direct knowledge of the matter.

"We are more concerned if there are declines in exports in our top markets like India and China rather than Iran," the source added, declining to be identified due to the sensitivity of the issue.

RTRS-China Jan soy imports down 15 pct vs Dec - customs

BEIJING, Feb 10 (Reuters) - China, the world's top soy buyer, imported 4.61 million tonnes of the oilseed in January, down 15 percent from 5.42 million tonnes in December, as crushers reduced imports during a holiday shutdown, figures from the General Administration of Customs of China showed on Friday.

On an annual basis, soy imports fell 10.2 percent in January, largely due to seasonal factors as the Lunar New Year fell in January this year but in February last year. Soy plants across the country typically close during the week-long holiday.

The seasonal distortion makes the January data particularly hard to read but after stripping away the week-long Lunar New Year holiday, average weekly import volumes in January rose 13 percent from the preceding month.

Demand for soy, used as a cooking oil and feedstock for pigs, typically jumps ahead of festive seasons, but confronted by climbing stocks and a post-holiday demand lull, analysts said imports could weaken in February before rebounding in March as farmers start to restock hogs.

"Global soybean prices are also on the high side, which should prevent China from going all out with imports in the coming weeks," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.

Trader's Highlight

DJI- NEW YORK, Feb 10 (Reuters) - The S&P 500 posted its biggest daily percentage decline thus far in 2012 on Friday after an about-face on Greece's long-awaited debt deal ended a five-week streak of gains for equities.

All but one of the 30 Dow components ended lower while all 10 S&P sectors fell, with cyclical sectors such as energy, financials and materials the biggest losers.

The Dow Jones industrial average was down 89.23 points, or 0.69 percent, at 12,801.23. The Standard & Poor's 500 Index was down 9.31 points, or 0.69 percent, at 1,342.64. The Nasdaq Composite Index was down 23.35 points, or 0.80 percent, at 2,903.88.

NYMEX- NEW YORK, Feb 10 (Reuters) - U.S. crude oil futures fell on Friday for the first time in four sessions after a far-right party in Greece refused to sign off on austerity measures, denting the country's efforts to secure an EU-IMF bailout package to avoid a crippling debt default.

But late in the day, the Greek cabinet approved a draft bill commiting Greece to reforms the EU and the IMF require in return for the bailout package. A parliamentary vote was set for Sunday, keeping hopes alive that the country would not fall into default.

On the New York Mercantile Exchange, crude for March delivery settled at $98.67 a barrel, falling $1.17, or 1.17 percent. For the week, U.S. front-month crude rose 83 cents, or 0.85 percent from the $97.84 close on Feb. 3.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed firm on Friday after spending most of the session in the red, with the market rallying into the closing bell on a late flurry of buying.

Traders attributed the late-day rally variously to worries about hot and dry conditions in southern Brazil, traders buying soybeans against corn on intermarket spreads, and talk of Brazil increasing its biodiesel mandate later this year.

Soyoil gained relative to soymeal. Soybeans and other commodities were pressured for most of the session by a surge in the U.S. dollar as the euro fell after another snag in negotiations for a financial bailout package for Greece.

CBOT soybeans unofficially ended the week down 0.3 percent, snapping a three-week advance.

FCPO- SINGAPORE, Feb 10 (Reuters) - Malaysian crude palm oil fell on Friday on the back of a bearish U.S. crop report and prospects of slowing demand, although losses were capped by a long-awaited bailout deal for Greece which has yet to be
approved.

The U.S Department of Agriculture on Thursday forecast larger-than-expected soybean supplies in its monthly report even as a severe drought curbed yields in Brazil and Argentina, putting pressure on palm oil prices, which track soybean oil closely.

The market's a little bearish because it expects a steeper production drop in the South American crop," said a dealer with a foreign commodities brokerage in Kuala Lumpur.

However, the low production season in the first quarter and improving demand from China and India should support crude palm oil prices in the range of 3,000 to 3,200 ringgit in the near term," added the dealer.

Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.5 percent to close at 3,131 ringgit ($1,034) per tonne. The futures market has lost 1.4 percent so far this year. Traded volumes were thin at 22,375 lots of 25 tonnes each, compared to the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 10 (Reuters) - Southeast Asian stock indexes were mostly weaker on Friday as investors, awaiting a rescue package for Greece, trimmed positions in risky assets.

Jakarta's Composite Index shed 1.67 percent, falling at one point to the lowest since Jan. 16. One factor dragging it down was banks, hit by Bank Indonesia's unexpected decision on Thursday to cut the benchmark interest rates.

Some analysts said the rate cut dampened margin outlooks of banks and broad sentiment of the sector. Still, there was some optimism about the selling of bank shares did not signal the end of a bull market.

In Singapore, property developer CapitaLand Ltd and commodities firm Olam International pulled back after recent gains. CapitaLand fell 3.1 percent while Olam was down 2.9 percent.

Among weak spots, palm plantation firm Sime Darby Bhd edged down 0.3 percent and Thai petrochemical firm PTT Global Chemical Pcl fell 1.4 percent. They had rallied early this week.

RTRS-Malaysian exporters halt palm oil supply to Iran -sources

KUALA LUMPUR, Feb 8 (Reuters) - Malaysian palm oil exporters have stopped supplying Iran with most of the 30,000 tonnes of the food staple the Middle Eastern country buys each month, or about half its demand, as Western financial curbs on Tehran stymie payments, two trading sources said.

The halt in Malaysia's palm oil exports to Iran, which the traders said started late last year, is the latest sign that sanctions aimed at persuading Tehran to abandon a suspected nuclear weapons programme have started to bite.

The sanctions, spearheaded by the United States and European Union, have made it difficult for Iranian palm oil buyers to use letters of credit and make payments via middlemen in the United Arab Emirates (UAE) to Malaysian exporters.

Malaysia is the world No.2 producer of palm oil, used to make products from bio-diesel to cooking oil. It is a key supplier of Iran's palm oil, along with Indonesia, the world's top producer.

"Most of the companies selling palm oil to Iran have stopped since the end of last year," one trader with direct knowledge of the deals told Reuters on Wednesday.

Trader's Highlight

DJI- NEW YORK, Feb 8 (Reuters) - U.S. stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.

Underlying confidence kept the Dow near an almost four-year high notched on Tuesday, though trading has been quiet since last week's stellar employment report. The S&P and Nasdaq are both up 0.3 percent so far this week while the Dow is
essentially unchanged.

Greek party leaders gathered on Wednesday to agree to reforms demanded by the European Union and the Internationa Monetary Fund after delays.

European Central Bank policymakers were still divided on what contribution the bank could make to a restructuring of Greece's sovereign debt, sources said. The ECB has ruled out joining private creditors in voluntarily accepting a reduction in the value of the Greek bonds it holds.

"We would take a hit if Greece is unable to come to a deal, but lately we've been decoupling from Europe as markets catch up to how strong the economy appears to be," said Frederick.

The Dow Jones industrial average was up 5.75 points, or 0.04 percent, at 12,883.95. The Standard & Poor's 500 Index was up 2.91 points, or 0.22 percent, at 1,349.96. The Nasdaq Composite Index was up 11.78 points, or 0.41 percent, at 2,915.86.

NYMEX- NEW YORK, Feb 8 (Reuters) - U.S. crude futures rose for a second day on Wednesday, shrugging off data showing rising inventories and supported by strong gasoline futures as Brent crude pushed higher on hopes for a Greece debt deal and on
concerns about Iran.

Brent crude oil futures rose for the seventh straight day and posted their highest close in more than six months.

On the New York Mercantile Exchange, March crude rose 30 cents, or 0.3 percent, to settle at $98.71 a barrel, having traded from $98.10 to $99.01.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed lower in seesaw trade as brokers adjusted positions a day ahead of the U.S. Department of Agriculture's monthly crop reports, traders said.

Soybeans erased early gains after the dollar turned higher-- a bearish signal for dollar-backed U.S. grains and oilseeds-- and U.S. crude oil futures pared early advances.

March soybean futures matched their Jan. 3 high of $12.44-3/4 in overnight Globex trade but failed to break through resistance and move higher.

Additional pressure from much-needed rains that fell in the last day in Argentina, bolstering soybean yield prospects. Up to 3.5 inches fell in parts of Buenos Aires, said Drew Lerner of U.S.-based World Weather Inc.

USDA in its February crop and supply/demand reports is expected to show a small reduction in U.S. soy ending stocks and lower its estimates of South American corn and soybean production.

FCPO- SINGAPORE, Feb 8 (Reuters) - Malaysian crude palm oil jumped to a near three-week high on Wednesday as the market reopened after a two-day break, tracking broader markets, such as soyoil, ahead of a key U.S. crop report on Thursday.

The U.S. soyoil contract for March on the Chicago Board of Trade has gained 1.8 percent this week on prospects of higher demand, setting the stage for a palm oil rally.

Investors are keeping an eye on the February crop production as well as the supply and demand reports set to be issued by the U.S Department of Agriculture on Thursday.

Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange gained 2.3 percent to close at 3,155 ringgit ($1,051) per tonne, but off the earlier high of 3,158 ringgit, a level last seen on Jan. 26. Traded volumes stood at 24,972 lots of 25 tonnes each, just slightly thinner than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 8 (Reuters) - Southeast Asian stock indexes rose on Wednesday as strong oil and metal prices bolstered commodities-related shares, and on hopes the Greece would agree to a reform deal that would open the way for a new
international rescue package.

Shares of Golden Agri climbed 2.6 percent to their highest in more than one year, Sime Darby rose 2.3 percent to the highest in almost three years, Indorama surged 10.07 percent to five-month highs.