RTRS-UPDATE 1-Morgan Stanley closes CBOT soy long recommendation

CHICAGO, March 29 (Reuters) - Morgan Stanley is ending its recommendation to hold a long position in Chicago Board of Trade November soybean futures due to concerns that an upcoming U.S. Agriculture Department report could send a bearish shock to the market, the investment bank said on Thursday.

"The response to a bearish surprise tomorrow could be much larger than to a bullish one," analyst Hussein Allidina said in a note to clients.

Large speculators recently built a record long position in CBOT soybeans, according to Commodity Futures Trading Commission data, showing that the market is primed for a sell-off if the government report on planting and supplies comes in higher than expected, the note said.

The managed money's large net position also indicates little upside potential in the event of a bullish report.

Morgan Stanley initiated the long recommendation in November 2010, when the November soybean contract was trading at $11.31 a bushel. November soybeans were down 9-1/2 cents a bushel at $13.11 in Thursday afternoon trading.

November soybeans have risen nearly 9 percent so far this year as the market has attempted to buy acres from corn

USDA will release its prospective plantings and quarterly grain stocks report on Friday morning at 7:30 a.m. CDT (12340 GMT).

Trader's Highlight

DJI- NEW YORK, March 29 (Reuters) - U.S. equities pared most losses in a late-day surge on Thursday, driven by investors snapping up big-cap names and the notion that concerns about the jobs picture, which helped spur the buying of safe-haven government debt, were overblown.

New U.S. claims for jobless benefits fell only slightly last week, according to the Labor Department, missing forecasts for a greater decline, while the prior week's number was revised up.

Some investors said the data undercut optimism about U.S. job growth, and Federal Reserve Chairman Ben Bernanke said again that the U.S. economy's recovery was relatively weak.

The Dow Jones industrial average <.DJI> closed up 19.61 points, or 0.15 percent, at 13,145.82. The Standard & Poor's 500 Index <.SPX> fell 2.26 points, or 0.16 percent, at 1,403.28. The Nasdaq Composite Index <.IXIC> slid 9.60 points, or 0.31 percent, to 3,095.36.

NYMEX- NEW YORK, March 29 (Reuters) - U.S. crude futures fell on Thursday for the second straight session as increasing talk from consumer nations about a possible strategic oil reserves release and rising crude oil stockpiles in the United States prompted end-of-quarter selling.

France believes there is a good chance of a U.S.-Europe accord on the release of strategic oil reserves, Prime Minister Francois Fillon said on Thursday.

He was commenting in an interview on France Inter state radio and Fillon's remarks came after French ministers revealed on Wednesday that Paris was in talks with the United States and Britain on a possible release of strategic oil stock.

The increased chatter about reserves releases comes as the West tightens sanctions on Iran in an effort to curb Tehran's nuclear enrichment program and as many consuming countries scramble to find alternatives to Iranian crude oil.

On the New York Mercantile Exchange, May crude fell $2.63, or 2.5 percent, to settle at $102.78 a barrel, having traded from $102.13 to $105.70.

CBOT SOYBEANS- Chicago Board of Trade soybean futures fell 1 percent, as positioning ahead of the release on Friday of U.S. Agriculture Department's March plantings and quarterly stocks reports dominated trading.

Traders noted a wave of long liquidation as investors sought to close out positions ahead of the report.

FCPO- SINGAPORE, March 29 (Reuters) - Malaysian palm oil futures slipped for a second day on Thursday, as traders booked more profit from a rally this week, although losses were curbed by soybean supply fears in South America and firm export outlook for palm oil.

Palm oil could not breach the psychological 3,500 ringgit level this week, especially when market players were cautious ahead of the U.S. Department of Agriculture's quarterly inventory report and planting forecast due on Friday.

"We see that palm oil prices have come to a one-year high, so it's not surprising that some profit-taking activities start to kick in, especially now as we are at the end of the month, some book squaring is going to happen," said Ker Chung Yang, an
analyst at Phillip Futures in Singapore.

"There could be some positioning ahead of this coming Friday's reports. Although the market is speculating that there could be more planted acres for corn, the reports could turn out to be a surprise and soybean prices could subsequently be
weighed on that."

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange closed down 0.5 percent at 3,456 ringgit ($1,127) per tonne. This week the market went as high as 3,497 ringgit, a level unseen since March 10 2011.

Traded volumes were thin at 20,280 lots of 25 tonnes each, compared to the usual 25,000 lots.

REGIONAL EQUITY- March 29 (Reuters) - Southeast Asian stock markets ended slightly firmer on Thursday in moderate volume as investors cautiously bought risky assets amid growing concerns over slowing economic growth in China and the United States.

In Singapore, big caps drove down the market, with a loss of 1.4 percent in United Overseas Bank and a fall of 1.2 percent in casino operator Genting Singapore .

Trader's Highlight

DJI- NEW YORK, March 28 (Reuters) - U.S. stocks declined on Wednesday as sliding oil and metals prices gave investors a reason to sell commodity-related shares.

A sharp fall in U.S. crude oil futures hit energy stocks, prompted by talk of a release of some U.S. and European strategic oil reserves. Materials shares dropped as well.

A weaker-than-expected report on U.S. durable goods orders deflated some of the recent investor optimism over the economy, leading to softness in industrial shares.

Window dressing at the "end of quarter has probably driven up stock prices over the last couple of days," said Robbert Van Batenburg, head of equity research at Louis Capital in New York.

The Dow Jones industrial average <.DJI> fell 71.52 points, or 0.54 percent, to 13,126.21 at the close. The Standard & Poor's 500 Index <.SPX> slipped 6.98 points, or 0.49 percent, to 1,405.54. The Nasdaq Composite Index <.IXIC> declined 15.39 points, or 0.49 percent, to 3,104.96.

NYMEX- NEW YORK, March 28 (Reuters) - U.S. crude futures fell on Wednesday as a jump in crude inventories in the United States and the prospect of a release of U.S. and some European strategic reserves sent oil prices into retreat.

U.S. crude stocks rose by 7.1 million barrels last week, the Energy Information Administration said, more than forecast.

On the New York Mercantile Exchange, May crude fell $1.92, or 1.79 percent, to settle at $105.41 a barrel, below the 30-day average of $106.32, and having traded from $104.67 to $106.94.

CBOT SOYBEANS- Soybean futures at the Chicago Board of Trade fell slightly on technical selling and long liquidation ahead of USDA plantings and quarterly stocks reports on Friday, traders said.

Spillover pressure from lower corn and crude oil futures added pressure, although soybeans pared losses by the close.

Soymeal gained against soyoil on meal/oil spreads; soyoil pressured by nearly 2 percent decline in crude oil.

FCPO-SINGAPORE, March 28 (Reuters) - Malaysian palm oil futures closed down on Wednesday as traders booked profits from a one-year high hit the previous day, although losses were limited by news of larger food imports by China and soybean crop damage in South America.

Palm oil has gained 9.4 percent so far this year with 3,500 ringgit level within striking distance although many in the market say the run-up is too speculative.

Commodity traders are facing a choppy week as the focus turns to the U.S. Department of Agriculture's quarterly inventory report and planting forecast due on Friday.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange edged down 0.2 percent to close at 3,473 ringgit ($1,134) per tonne. Prices touched a
more-than-one-year high level of 3,497 ringgit on Tuesday.

Traded volumes stood at 20,004 lots of 25 tonnes each, thinner than the usual 25,000 lots as investors were wary ahead of the Friday reports.

REGIONAL EQUITY- BANGKOK, March 28 (Reuters) - Most Southeast Asian stock markets edged down on Wednesday in moderate volumes looking for more clues in the economic data from the U.S. after rallying on hopes of further stimulus from the Federal Reserve.

Investors remained cautious in buying the region's risky assets ahead of U.S. durable goods orders data for February, due later in the day after comments on Tuesday by Fed chief Ben Bernanke fueled investor bets for further U.S. monetary
stimulus.

Fed Chairman Ben Bernanke said on Tuesday it was too soon to declare victory in the U.S. economic recovery, warning against complacency in policymaking as the outlook brightens.

In Singapore, rig builder Keppel Corp Ltd bucked the trend with a 0.6 percent gain after announcing a rig deal worth $315 million.

RTRS-Palm oil to rise to $1,303 a tonne by end June-Mistry

KUALA LUMPUR, March 27 (Reuters) - Malaysian palm oil futures are likely to rise to 4,000 ringgit ($1,303) per tonne by end-June as demand increases ahead of the Muslim fasting month of Ramadan while Southeast Asian supplies diminish, top industry analyst Dorab Mistry said on Tuesday.

Mistry's forecast, which is unchanged from earlier this month, represents a 15.3 percent jump from current palm oil prices, trading at 3,467 ringgit per tonne at 0430 GMT.

Mistry, head of edible oils trading with Godrej Industries, said many countries in Asia and the Middle East were stocking up on palm oil in June ahead of the Muslim fasting month, which is due to start around July 20.

These summer months, however, are when production usually declines in top palm oil producers Indonesia and Malaysia, where plantations are also seeing weaker yields after last year's strong output.

"Demand for palm oil will be greatest just when production will not have had time to recover. We are likely to see very tight stocks and a run up in prices so as to ration demand," Mistry said in a speech at an industry conference in Beijing.

"Reports of March production are also not encouraging. As I have earlier pointed out, CPO production in the first half of 2012 will be lower than it was in the first half of 2011," he added, referring to crude palm oil.

Following are some key points from the speech delivered at the China International Oils and Oilseeds Conference. Reuters obtained an advance copy of the speech.

PALM OIL

Mistry expects palm kernel oil to trade higher from current levels and rise to $1,700 CIF Rotterdam. Coconut oil should trade at a discount and reach $1,500 CIF Rotterdam.

Sees the prospect of Thailand becoming a palm oil importer. For a related story.

Sees an increase in demand for palm oil in Europe due to high rapeseed oil prices. Mistry said there are reports that rapeseed biodiesel has become uncompetitive, paving the way for more soy and palm biodiesel to be shipped to Europe.

Says availability of Indonesian refined products is getting tighter and therefore, Malaysian refiners may once again be able to take a larger market share.

INDIA

Says stands by earlier estimate of India's current rapeseed crop at around 5.3 million to 5.8 million tonnes.

Says prices of rapeseed and mustard oil are very high and these appear to justify his crop estimate. It also means Indian imports of soybean oil from Argentina will be higher than estimated.


SOYBEANS, SOYOIL

Says reports that U.S. farmers will plant more corn if the weather remains dry and warm will have a significant impact on soy. Corn is a very reliable crop and prices are high, which gives farmers some sort of guarantee.

Says it is quite possible that U.S. farmers will plant the estimated 95 million acres to corn and this will leave soybean acreage for 2012 unchanged or very slightly higher.

Says in 2012, U.S. farmers need to plant at least 3 to 4 million extra acres of soybeans, and for yields to be in line with current trends, in order to bring in a big crop.

Expects prices of crude degummed soya oil to rise to about $1,300 FOB, soy oil futures in Chicago to trade up to 60 cents and soybeans to hit $15 per bushel. Says increases are partly driven by South American biofuel needs.

CHINA

Says there is high edible oil stocks and negative parity for imports but notes that evidence over the last 12 months suggests that high stocks and negative parity have not affected the combined imports of oilseeds and oil in total.

Says China imports more oilseeds or more oil depending on its domestic crush economics and these factors will normalise if domestic interest rates are allowed to decline and liquidity increases.

RTRS-U.N. FAO SENIOR ECONOMIST ABBASSIAN SEES WORLD SOY, CORN PRICES "VERY FIRM" OVER NEAR TERM

BUENOS AIRES, March 26 (Reuters) - World grain prices will likely remain "very firm" over the near term as animal feed demand outpaces expectations and dry weather stunts supply, the senior economist of the UN's Food and Agriculture Organization (FAO) said on Monday.

"In the near term - this month and next - we are going to still see very firm prices. What happens after that depends on crop development and the weather," the FAO's senior economist Abdolreza Abbassian told Reuters in a telephone interview.

Trader's Highlight

DJI- NEW YORK, March 27 (Reuters) - U.S. stocks retreated from near four-year peaks on Tuesday, while a batch of large-cap shares hit new highs, with the help of portfolio managers snapping up top performers near the end of the quarter.

With the first quarter ending on Friday, portfolio managers adjusted holdings by buying some of the best performers to dress up their portfolios. A total of 175 stocks on the New York Stock Exchange hit new 52-week highs on Tuesday, including Dow components Home Depot and International Business Machines , along with high-end retailers.

The Dow Jones industrial average <.DJI> shed 43.90 points, or 0.33 percent, to close at 13,197.73. The Standard & Poor's 500 Index <.SPX> dropped 3.99 points, or 0.28 percent, to 1,412.52. The Nasdaq Composite Index <.IXIC> dipped 2.22 points, or 0.07 percent, to 3,120.35.

NYMEX- NEW YORK, March 27 (Reuters) - U.S. crude futures edged higher on Tuesday in tug-of-war trading as investors factored increasing concerns about supply disruptions against the likelihood of a release of strategic oil reserves to cap rising fuel costs.

Prices for both U.S. and Brent crude edged higher on reports of production problems in the North Sea and South Sudan. This added to persistent fears about potential disruption of supply from Iran as Tehran and the West spar over the OPEC nation's
nuclear program.

Crude prices turned negative after a Bloomberg report quoted Charles McConnell, assistant secretary for fossil energy at the U.S. Energy Department, as saying a release from reserves "is being considered."

A U.S. government official told Reuters the Obama administration had not changed its stance on tapping the reserves or other options under consideration to help cool fuel prices.

On the New York Mercantile Exchange, May crude rose 30 cents, or 0.28 percent, to settle at $107.33 a barrel, having traded from $106.52 to $107.73. Prices dipped in post-settlement trading after the API data.

CBOT SOYBEANS- Chicago Board of Trade soybean futures fell as investors locked in profits following the market's rally to a six-month peak earlier in the week, traders said.

Benchmark May contract remained above all key moving averages despite Tuesday's decline.

Prospects for good export demand for U.S. supplies due to crop shortfalls in South America limited the drop in the futures market.

FCPO-SINGAPORE, March 27 (Reuters) - Malaysian palm oil futures hit a more-than-one-year high on Tuesday as traders bet on strong export growth after droughts had damaged the South American soy harvest that is crushed into competing soyoil.

Worries about soybean crop damage in Brazil can potentially boost demand for palm oil and has upped the stakes in the unfolding U.S acreage battle between soy and corn with a key U.S. government report due to be released on Friday.

Comments by leading analyst Dorab Mistry at a conference in China that palm oil will rise to 4,000 ringgit by end-June also pushed prices higher.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange inched up 0.6 percent to close at 3,481 ringgit ($1,139) per tonne after going as high as 3,497 ringgit, a level unseen since last March.

Traded volumes stood at over 21,026 lots of 25 tonnes each, lighter than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, March 27 (Reuters) - Southeast Asian stock markets
gained on Tuesday after Federal Reserve Chairman Ben Bernanke signaled ultra-loose monetary policy would continue.

Foreign investors bought shares in Indonesia and Malaysia with a net inflow of $54.4 million and $105.1 million respectively on Tuesday.

Federal Reserve Chairman Ben Bernanke on Monday made clear that the central bank is in no rush to reverse its ultra-loose monetary policy after responding aggressively to a deep recession.

RTRS-Brazil soy crop seen down at 66.7 mln T -AgRural

SAO PAULO, March 26 (Reuters) - Brazil's 2011/12 soybean crop is seen falling to 66.7 million tonnes from 68 million tonnes forecast in February as the effects of drought in the southern producer states takes its toll, crop forecasters AgRural said on Monday.

Drought this season over the South American grain crop in Brazil, Argentina and Paraguay, which together produce over half the world's soy trade, has raised concers of falling stocks of the world's most important source of protien.

Yields have been falling consistently in all Brazil's large growing states, with the exception of the No. 4 producer Goias that got excellent rains this year. Sharp declines were registered in the states of Parana and Rio Grande do Sul, the No. 2 and No. 3 soy growers.

The drought that began in November has been particularly acute in those southern states.

Expected average Brazilian yields have fallen to 44.9 60-kg bags per hectare from 45.7 bags/ha in February, the forecasters said. Yields reached a record 51.9 bags/ha last season.

Area planted reached a record 24.82 million hectares this season.

Harvest has passed the halfway point with 61 percent of the crop collected, up from 55 percent the week earlier. The No. 1 soybean state Mato Grosso is nearly the end of harvest already with 93 percent of its crop collected, AgRural said.

RTRS-UPDATE 1-US soy seen above $14 on lower Latam output-Mielke

BEIJING, March 26 (Reuters) - Lower South American soy production this year due to severe drought is likely to push up Chicago Board of Trade soy futures <0#S:> to more than $14 per bushel soon, top oilseed analyst Thomas Mielke said.

Worries over a lower production in Brazil and Argentina, the world's top and third largest producers respectively, have already pushed up CBOT prices about 13 percent this year with the May contract trading at $13.75 per bushel on Monday.[GRA/]

"We have seen a small correction last week and I think the technical correction is over," Mielke, head of Hamburg-based research house Oil World, told a conference in Beijing on Monday.

"I expect prices of soybeans to reach $14 (a bushel) quite soon and probably rally towards $14-$15 or above sometime in the next 4 to 8 weeks, depending on South American harvest progress and harvest result."

The research house last week cut its forecast of Brazil's 2012 soybean crop to 66.5 million tonnes, compared with 75.3 million tonnes in 2011 because of drought and crop fungus. It also reduced its forecast of Argentina's 2012 crop to 46.5 million tonnes, down from 49.2 million tonnes in 2011.

Oil World is likely to cut the Brazilian soy output estimate further by 1-2 million tonnes, said Mielke.

China, the world's top soy importer, has already stepped up imports from the United States over the past weeks to try to source enough to meet rising demand and expanded capacity.

"China has been an active buy er over the past few weeks , " he said.

China, which imports about 60 percent of global soybean s , has booked about 29 million tonnes, or 25 percent, more in the first half of the year, ac cording to estimates from its of ficial think-tank, the China National Grain and Oils Information Center (CNGOIC).

Trader's Highlight

DJI- NEW YORK, March 26 (Reuters) - The S&P 500 rebounded from its worst week so far this year to retake a four-year high on Monday after Federal Reserve Chairman Ben Bernanke signaled supportive monetary policy will remain even though the job picture has begun to improve.

The three major U.S. stock indexes climbed 1 percent or more and all 10 S&P 500 sectors advanced. Gains were led by S&P technology shares, with that sector's index <.GSPT> up 1.7 percent, and the S&P health care sector index <.GSPA> also up 1.7 percent. Shares of International Business Machines , up 1.1 percent at $207.77, gave the Dow its biggest boost.

Bernanke's comments came as investors try to gauge how much longer a nearly six-month rally in stocks will last and reinforced the view that further quantitative easing, or QE3, from the Fed may be possible.

The Dow Jones industrial average <.DJI> shot up 160.90 points, or 1.23 percent, to 13,241.63 at the close. The Standard & Poor's 500 Index <.SPX> gained 19.40 points, or 1.39 percent, to 1,416.51. The Nasdaq Composite Index <.IXIC> climbed 54.65
points, or 1.78 percent, to 3,122.57.

NYMEX- NEW YORK, March 26 (Reuters) - U.S. crude futures edged up on Monday as comments from Federal Reserve Chairman Ben Bernanke reinforced expectations that interest rates will be kept low and as strong gasoline futures provided lift to the oil complex.

Bernanke said the U.S. economy needs to grow more quickly to bring the unemployment rate down further, defending the central bank's policy of very low interest rates.

While he gave no indication the Fed intended to start on a third round of bond purchases, Bernanke also made clear the central bank is in no rush to reverse course after responding aggressively to a deep recession.

Bernanke's comments weighed on the dollar by reinforcing hopes for more quantitative easing and lessening expectations that interest rates might be raised any time soon.

Ahead of weekly reports on U.S. oil inventories, crude stocks were expected to have risen last week, a Reuters survey of analysts showed on Monday.

On the New York Mercantile Exchange, May crude rose 16 cents, or 0.15 percent, to settle at $107.03 a barrel, having traded from $106.19 to $107.32.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade hit a six-month high on renewed worries about the size of South America's soy harvest, although the market pared gains by the close, traders said.

Front-month soybeans reached $13.88-1/2 per bushel, the highest spot soybean price since mid-September 2011. Spot soyoil also touched a six-month high and spot soymeal hit a near seven-month high.

FCPO- SINGAPORE, March 26 (Reuters) - Malaysian palm oil futures extended gains to a one-year high on Monday as strong exports data and drought woes in soy-producing South America boosted investor sentiment.

Agriculture markets, including palm oil, are set to face choppy trade ahead of the U.S. prospective plantings report due on Friday, which will gauge output of soybeans that is usually crushed into competing soybean oil.

Palm oil has gained 8.9 percent since the start of 2012 on Asian demand chasing sluggish production, limited soyoil supplies flowing from South America although now any prospect of higher U.S. soy harvests may rein in gains.

The market got a further boost after leading industry analyst Thomas Mielke said later in the day that soy prices would hit above $14 a bushel in the next four to eight weeks as the severe drought hits the crops in Brazil and Argentina.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange settled up 1.0 percent at 3,459 ringgit ($1,123) per tonne after going as high as 3,479 ringgit, a level unseen since last March.

Traded volumes stood at 23,949 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, March 26 (Reuters) - Most Southeast Asian stock markets fell on Monday in moderate volume as a decline in new U.S. home sales added to concerns about slowing global growth, weighing on shares of resources and materials firms.

Foreigners remained buyers, however, offering regional bourses some support.

Malaysia saw net foreign inflows of 233.58 million ringgit ($75.9 million), Indonesia $26.7 million and the Philippines $12.2 million, though all three markets ended the day lower.

Singapore gave up early gains after HSBC removed blue-chip Singapore Telecommunications Ltd from its top 10 Asian stocks equity portfolio, as it cut its rating for Singapore to underweight from overweight.

Casino operator Genting Singapore PLC fell 2 percent, leading the overall index down.

Analysts in Singapore expect the market to further consolidate until catalysts come from improved economic indicators from the U.S. in the near future.

RTRS- UPDATE 1-Farm Futures survey pegs 2012 US corn acreage 95.1 mln

March 23 (Reuters) - A Farm Futures magazine farmer survey pegged 2012 U.S. corn acreage at 95.1 million and soybean acreage at 76.0 million, above last year's plantings.

Corn would get the largest planted acreage since 1944, is above last year's acreage of 91.9 million and above USDA's forecast of 94.0 million released at its outlook forum in February.

Soy plantings at 76.0 million is above last year's U.S. acreage of 75.0 million and is above USDA's outlook forum number of 75.0 million.

The Farm Futures survey indicated 2012 total wheat acreage at 56.7 million, winter wheat 41.9 million, other spring 12.4 million and durum at 2.4 million.

Farm Futures senior editor Bryce Knorr said the email survey was conducted from March 5-20, with 1,500 growers responding, an all-time high.

RTRS-UPDATE 3-Argentina sees 2011/12 corn crop at 21.2 mln T

BUENOS AIRES, March 22 (Reuters) - Argentina expects this season's corn crop to total 21.2 million tonnes versus its previous official estimate of 20.5 million to 22.0 million tonnes, the Agriculture Ministry said on Thursday.

The ministry, in its monthly crop report, also changed its 2011/12 soy harvest forecast to 44 million tonnes from a previous range of 43.5 million to 45.0 million tonnes.

In the 2010/11 season, the government said, 23 million tonnes of corn was brought in and 48.9 million tonnes of soy.

United States and the third-biggest exporter of soybeans. Farmers in Argentina's vast Pampas grains belt have started collecting this season's corn and soy.

Original estimates for both crops underwent cuts after drought hit the Pampas during the height of the Southern Hemisphere summer in December and January. Initial projections put corn at up to 30 million tonnes, while up to 53 million tonnes of soy was forecast at the start of the planting season.

Trader's Highlight

DJI- March 23 (Reuters) - The euro rose and world stocks rebounded on Friday, lifted by shares in energy and basic materials, as concerns about global growth were set aside by investors who saw further gains in this year's rally.

Commodity prices ticked higher on the belief a sell-off on Thursday, triggered by slower-than-expected manufacturing data from China and the euro zone, was overdone.

Copper rebounded from a two-week low the previous session, helped by a weaker dollar, falling inventories and an outlook for above-historical consumption levels from Chile's Codelco, the world's top producer.

European shares trimmed losses and Wall Street rose on rebounding energy and material shares. Rising crude oil prices helped the energy sector.

The Dow Jones industrial average <.DJI> closed up 34.59 points, or 0.27 percent, at 13,080.73. The Standard & Poor's 500 Index <.SPX> rose 4.33 points, or 0.31 percent, at 1,397.11. The Nasdaq Composite Index <.IXIC> added 4.60 points, or 0.15 percent, at 3,067.92.

NYMEX- NEW YORK, March 23 (Reuters) - U.S. crude oil futures rose more than 1 percent on Friday, on news that some buyers have stopped or scaled back imports of Iranian oil due to Western sanctions that seek to rein in Tehran's disputed nuclear
program.

Crude exports from Iran appear to have dropped this month to around 300,000 barrels per day, or 14 percent, estimates by UK industry consultant Petrologistics and a large European oil company show.

Oil futures also rose on rumors that Israel was mobilizing its forces. Israel later denied any such move.

A mixed report on U.S. housing, in which single family home sales fell in February while prices jump to an eight-month high caused crude futures to pare gains.

On the New York Mercantile Exchange, crude for May delivery settled at $106.87 a barrel, gaining $1.52, or 1.44 percent. For the week, front-month crude fell 19 cents, or 0.18 percent.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed 1.3 percent higher, buoyed by worries about drought-hit crops in South America and possible insufficient U.S. soy seedings, traders said.

Firm cash markets supported, with more U.S. old-crop soy sales to China expected amid South America's crop woes. Traders said China bought a cargo of U.S. soybeans on Thursday for April shipment from the Pacific Northwest.

Strength in crude oil lended support. U.S. and Brent crude futures advanced on news that Iranian oil exports have fallen significantly this month amid tightening Western sanctions.

FCPO- SINGAPORE, March 23 (Reuters) - Malaysian palm oil futures rose to a nine-month high on Friday, as an upbeat demand outlook for the edible oil supported prices and investor optimism returned after earlier fears of a slowdown in global growth and commodity demand.

Palm oil fell to a nine-day low on Thursday after data showed China's economic momentum slowed in March as factory activity shrank for a fifth straight month, leaving investors fretting about the risks to global growth.

But palm oil traders are betting on increased buying interest from the other major palm oil importers, Europe and India, to support the tropical oil, lifting futures to notch a yearly gain of 8 percent this year.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange gained 2.5 percent to close at 3,426 ringgit ($1,097) per tonne, lifting futures to post a gain of 0.8 percent this week.

Traded volumes stood at 32,759 lots of 25 tonnes each, higher than the usual 25,000 lots as traders were short covering ahead of the weekend.

REGIONAL EQUITY- BANGKOK, March 23 (Reuters) - Most Southeast Asian stocks recouped early losses to end modestly higher on Friday, helped by late buying in beaten-down blue-chips and resource-related shares.

Sentiment in the region turned more positive as European equity markets steadied following four straight sessions of losses sparked by concerns over the global growth outlook.

Among bright spots on Friday, Genting Singapore PLC surged almost 7 percent after Singapore's move to license two casino junket operators, and analysts said it could help the firm attract more big gamblers to its casino and lower
credit risk.

Malaysia-listed Genting Bhd which controls Genting Singapore, gained 2.2 percent.

RTRS-UPDATE 1-Indonesia raises crude palm oil export tax for April

JAKARTA, March 22 (Reuters) - Indonesia, the world's top palm oil producer, will increase its export tax for crude palm oil to 18 percent for April from 16.5 percent in March, while leaving its tax on cocoa beans unchanged, a trade ministry
official said on Thursday.

The government will also raise the export tax for RBD palm olein to 9 percent in April, versus 8 percent in March, said Deddy Saleh, the director general of foreign trade at the trade ministry.

Southeast Asia's largest economy has a palm export tax system that aims to boost downstream industries, secure domestic supplies and reduce volatility in cooking oil prices.

RTRS-UPDATE 1-China March soy imports seen up 33 pct -ministry

BEIJING, March 22 (Reuters) - China, the world's top soy buyer, is expected to import 5.1 million tonnes of the oilseed in March, an increase of 33 percent from February, the commerce ministry estimates, as crushers step up imports and feed mills
boost soymeal purchases.

China's soy imports in the first half of this year could rise 25 percent from a year ago, fuelled by strong demand from animal feed producers, an official think-tank said in a report.

The ministry also expects the country's canola imports in March to be 320,508 tonnes, a rise of 69 percent over actual arrivals in February.

The ministry data, based on reports by buyers, may not be in line with the March numbers that will be published by customs next month, but still provides a reference to gauge supplies.

Trader's Highlight

DJI- NEW YORK, March 22 (Reuters) - Oil prices plunged nearly $2 per barrel and global stocks fell for a third consecutive session on Thursday as shrinking manufacturing in China and in the two largest economies of the euro zone fueled worries about global growth.

U.S. Treasuries prices and the dollar rose as risk aversion increased, although fresh evidence that the U.S. labor market continues to strengthen tempered investors' bid for safety.

China, the world's second-biggest economy and a key driver of growth, said its manufacturing sector shrank for a fifth straight month in March. A senior government economist said the economy is facing more downward pressure than had been expected.

The Dow Jones industrial average <.DJI> closed down 78.48 points, or 0.60 percent, to 13,046.14. The Standard & Poor's 500 Index <.SPX> lost 10.11 points, or 0.72 percent, to 1,392.78. The Nasdaq Composite Index <.IXIC> dropped 12.00 points, or 0.39 percent, to 3,063.32.

NYMEX- NEW YORK, March 22 (Reuters) - U.S. crude futures ended almost 2 percent lower on Thursday as weak manufacturing data from China and the euro zone raised concerns that a slowdown in global growth could cut demand for oil.

The day's losses wiped out gains of more than 1 percent on Wednesday that emerged after data showed a surprise drawdown in U.S. crude inventories last week.

Losses were briefly pared in the morning on a report that first-time filings for jobless claims fell to a four-year low last week.

On the New York Mercantile Exchange, crude for May delivery settled at $105.35 a barrel, falling $1.92, or 1.79 percent.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade fell on disappointing weekly U.S. export sales and fears that economic concerns will slow demand from China, the world's top soy buyer, traders said.

Soybeans also pressured as investors unwound long soy/short corn spreads, due in part to positioning before key U.S. government plantings and stocks reports next week.

Spillover from U.S. crude oil futures, which fell nearly 2 percent as weak Chinese and European manufacturing data stoked fears that slowing economic growth could dent global energy demand. The HSBC flash purchasing managers index showed factory activity in China shrank for the fifth month in a row.

FCPO- KUALA LUMPUR, March 22 (Reuters) - Malaysian palm oil futures dropped to their lowest in nine days on Thursday as China's factory activity fell, renewing concerns over global economic growth and commodity demand.

Losses were limited compared to markets such as crude oil, as palm oil traders were betting export data due next week would show strong demand from Europea and India.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange ended down 0.8 percent at 3,342 ringgit ($1,100) per tonne after falling as low as 3,334 ringgit -- the lowest since March 13.

REGIONAL EQUITY- BANGKOK, March 22 (Reuters) - Southeast Asian stocks gave up most of their early gains on Thursday, with Singapore and Thailand falling into red, after data showed China's factory activity shrank for a fifth straight month.

The weak PMI survey added to recent concerns about a slowdown in the world's second-largest economy and the risks it poses to still sluggish global growth.

The euro zone's economy also took an unexpected turn for the worse in March.

Trader's Highlight

DJI- NEW YORK, March 21 (Reuters) - U.S. stocks mostly fell on Wednesday, weighed by the energy services sector, but gains in technology shares buoyed the Nasdaq and helped keep the S&P 500 near four-year highs.

The benchmark S&P 500 index, up 11.6 percent so far this quarter, found buyers at the 1,400 level, which has been held for five straight days. Support at that level suggests more gains in coming weeks.

The Dow Jones industrial average <.DJI> fell 45.57 points, or 0.35 percent, to 13,124.62 at the close. The S&P 500 Index <.INX> dipped 2.63 points, or 0.19 percent, to 1,402.89. The Nasdaq Composite <.IXIC> edged up 1.17 points, or 0.04 percent, to 3,075.32.

NYMEX- NEW YORK, March 21 (Reuters) - U.S. crude futures ended up more than 1 percent on Wednesday, recovering from the previous day's sharp losses, after government data showed a surprise drawdown in domestic oil stockpiles last week.

Tensions between Iran and the West over Tehran's nuclear program continued to be supportive.

With trading choppy, turnover dropped 37 percent from U.S. crude's 30-day average, Reuters data showed.

Investors remained cautious in the wake of Saudi Arabia's pledge on Tuesday -- the cause of the sharp loss that day -- that it would meet any supply shortfall, amid market fears of disruption in Iranian oil flow.

On the New York Mercantile Exchange, May crude , the new front month, settled at $107.27 a barrel, gaining $1.20, or 1.13 percent. It traded from $106.06 to $107.64.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended about 1 percent higher, rallying from a two-day sell-off on talk of Chinese demand and worries that U.S. farmers might not plant enough soybeans this spring to meet global needs.

Soybeans supported by rumors that China bought two cargoes of U.S. soybeans.

China, the world's top soy buyer, will import 29 million tonnes of soy in the first half of the year, a quarter more than the same period last year, due to demand from animal feed producers - Chinese think tank CNGOIC.

FCPO-SINGAPORE, March 21 (Reuters) - Malaysian palm oil futures rebounded slightly on Wednesday, as an upbeat demand outlook for the edible oil offset earlier losses on the back of lower crude oil that was weighed by Saudi Arabia's supply pledge.

Palm oil hit a 9-month high of 3,418 ringgit last week, and the rally appeared to be losing some steam after two straight days of losses this week.

But Malaysian export numbers helped snap the losing trend, and futures are trading 6.1 percent higher this year.

"Some market players are buying on export optimism, and the upcoming export figure may reflect stronger demand," said a dealer with a foreign brokerage in Malaysia.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange edged up 0.1 percent to close at 3,368 ringgit ($1,096) per tonne.

Traded volumes stood at 19,259 lots of 25 tonnes each, thinner than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, March 21 (Reuters) - Southeast Asian stocks ended mostly higher, buoyed by buying in late trade, while profit-booking across markets limited gains and pulled the Philippine index into negative territory for a third day.

RTRS-UPDATE 2-Bernanke comforted by easing European stresses

WASHINGTON, March 20 (Reuters) - Federal Reserve Chairman Ben Bernanke on Tuesday welcomed an easing in Europe's financial troubles and said the U.S. central bank would be ready to act if conditions worsened again.

"In the past few months, financial stresses in Europe have lessened, which has contributed to an improved tone of financial markets around the world, including in the United States," he said in testimony prepared for delivery on Wednesday.

Bernanke said U.S. financial institutions have some potential exposure to losses from the credit default swaps they sold to protect against a possible European sovereign debt default. But he said major U.S. banks are not vulnerable.

"These (CDS) sales have been more than offset by purchases of protection, which would imply that in the event of a sovereign default, U.S. financial institutions would be net recipients of CDS payouts," Bernanke said.

European financial markets have stepped back from the brink since Greece, at the epicenter of the region's debt crisis, struck a deal with creditors to cut its large debt burden. But Greece and several other euro zone countries are still grappling with deep budget cuts and tough economic reforms aimed at making their economies more competitive.

Bernanke, in his testimony to the U.S. House of Representatives Oversight Committee, said European policymakers must follow through on fiscal reforms for the recent period of relative calm to persist.

"Full resolution of the crisis will require a further strengthening of the European banking system; a significant expansion of financial backstops, or 'firewalls,' ... and, critically, continued efforts to increase economic growth and competitiveness and to reduce external imbalances," he said.

The Fed chief reiterated the central bank's commitment to keeping the U.S. financial system stable, even if Europe's woes flare up again.

"The Federal Reserve will continue to monitor the situation closely, work with our financial institutions and foreign counterparts to enhance the resilience of our financial system, and be ready to use our tools to help stabilize U.S. markets should the situation require such action," said Bernanke.

Bernanke is set to testify alongside U.S. Treasury Secretary Timothy Geithner. In an appearance before the House Financial Services Committee on Tuesday, Geithner warned Europe against an approach that focuses too heavily on short-term budget cuts.

RTRS-FOB Gulf Grain-Soy offers ease, China eyes new-crop

March 20 (Reuters) - U.S. soybean export premiums at the Gulf Coast were flat to lower for old-crop supplies on Tuesday amid sinking CIF basis bids and lackluster demand after Brazilian prices fell sharply in recent days, traders said.

Some price inquiries from Chinese buyers reported for U.S. new-crop shipments, but no fresh sales could be confirmed. China has recently been booking summer shipments of Brazilian soybeans, including an April-May cargo on Tuesday.

CIF soybean barge basis bids at the Gulf for nearby shipments fell by 3 to 4 cents per bushel on Tuesday as a lack of fresh export sales had holders of soybeans liquidating supplies amid more competitive prices in South America. Gulf FOB offers were flat to a penny lower.

Basis also pressured by concerns about slowing growth in China, the world's top soybean importer.

Traders monitoring labor strife in Argentina after grain truckers called an indefinite strike to demand higher pay.

No market impact has been noted yet, as the main thrust of Argentina's harvest is still two or three weeks away.

Corn export premiums at the U.S. Gulf Coast were mostly steady on Tuesday, capped by sinking CIF basis values butunderpinned by expectation for additional demand to develop following recent price decline.

Traders eyeing potential increase in corn import demand from China as prior large purchases have occurred with benchmark U.S. futures in the low-$6-per-bushel area. May corn closed at $6.47-1/2 a bushel on Tuesday.

Some traders question whether China may wait to book further corn purchases until after USDA prospective plantings report on March 30, which was expected to show the largest U.S. corn acreage since 1944 this year.

Buyers in Taiwan bought corn from Ukraine in small consignments to test quality, larger purchases possible.

Wheat export premiums at the U.S. Gulf were mostly steady on Tuesday in quiet trade.

Wheat imports by Indonesia, Asia's top importer, may rise 5 percent per year over the next decade amid growing wealth, an industry group said.

RTRS-OIL WORLD CUTS BRAZILIAN 2012 SOYBEAN CROP FORECAST BY 1.5 MLN T TO 66.5 MLN T

HAMBURG, March 20 (Reuters) - Hamburg-based oilseeds analyst Oil World said on Tuesday it had cut its forecast of Brazil's 2012 soybean crop by 1.5 million tonnes to 66.5 million tonnes compared with 75.3 million tonnes in 2011 because of drought and crop fungus.

Oil World also reduced its forecast of Argentina's 2012 crop by 0.5 million tonnes to 46.5 million tonnes, down from 49.2 million in 2011.

It cut its forecast of Paraguay's crop by 0.6 million tonnes to 4.0 million tonnes, down from 8.4 million tonnes in 2011.

"New damage (came) in the first half of March from very dry and hot conditions in southern Brazil and northern Argentina," Oil World said. "On top of that, the Brazilian states of Mato Grosso and Goias have reported damage from Asian Rust fungus, the worst in more than five years."

The United States is the world's largest soybean producer followed by Brazil with Argentina in third place. U.S. soybean prices touched new six-month highs on Friday and Monday on expectations drought damage to South American soybean harvests would transfer global import demand to the United States. [ID:nL4E8EG6BR] [ID:nL3E8EJ1EO]

"Demand for U.S. soybeans has clearly benefited from the downward revisions of South American crop estimates in recent weeks," Oil World said.

Oil World had also cut its forecast of Brazil's 2012 soybean crop by 0.5 million tonnes on Mar. 6. In December 2011 the analyst had put Brazil's upcoming crop at 72.8 million tonnes.

Oil World's forecasts compare to the U.S. Department of Agriculture's Mar. 9 estimates of 68.5 million tonnes for Brazil and 46.5 million tonnes for Argentina.

Oil World now estimates global 2011/2012 soybean production will fall to 243.2 million tonnes from 265.8 million tonnes in 2010/11 largely because of the South American harvest problems.

"It remains to be seen to what extent the recent price uptrend is going to slow down the demand growth," Oil World said. "No doubt, a decline in world production of soybeans in the vicinity of 22-23 million tonnes is necessitating a certain amount of demand rationing."

Trader's Highlight

DJI- NEW YORK, March 20 (Reuters) - Renewed concerns about China's economic growth weighed on global stocks o n T uesday, while oil prices dropped more than 2 percent on expectations Saudi Arabia would act to stem any price rise that could hurt
the global economy.

Safe-haven Treasuries gave up most initial gains, however, as Wall Street trimmed some of its losses in the afternoon. Meanwhile, the dollar rose broadly as growth-related currencies were pressured by Chinese worries.

The Dow Jones industrial average <.DJI> ended down 68.94 points, or 0.52 percent, at 13,170.19, while the Standard & Poor's 500 Index <.SPX> lost 4.23 points, or 0.30 percent, to 1,405.52. The Nasdaq Composite Index <.IXIC> fell 4.17 points, or 0.14 percent, to 3,074.15.

NYMEX- NEW YORK, March 20 (Reuters) - U.S. crude futures fell more than 2 percent on Tuesday after Saudi Arabia provided details about high production levels, saying there was no supply shortage and that the kingdom could boost output more to meet
any supply shortage.

A stronger dollar and intraday share price weakness added pressure as the U.S. April crude contract headed to expiration at the end of the session.

The dollar gained across the board, bolstered by safe-haven demand spurred by worries about a potential slowdown in China, which dragged down both European and U.S. equities.

Saudi Oil Minister Ali al-Naimi said the kingdom had met all its customers' requests for oil, was now pumping 9.9 million barrels per day and stood ready to raise output to full capacity of 12.5 million bpd, if needed.

On the New York Mercantile Exchange, expiring April crude fell $2.48, or 2.29 percent, to settle at $105.61 a barrel, having traded from $105.35 to $107.91.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade fell 1.5 percent to post their biggest decline in seven weeks, hit by technical selling, fund long liquidation and profit-taking from a six-month high, traders said.

Funds hold a big net long position in CBOT soybean futures and open interest has risen 40 percent since the start of 2012, leaving the market vulnerable to bouts of long liquidation.

Funds sold soy, corn and wheat after all three markets posted downside reversals on Monday, with the front contract closing lower after setting higher highs and lower lows than the previous session.

Worries about slowing growth in China, the world's top soy buyer, added pressure; global miner BHP Billiton said it saw signs that growth in Chinese iron ore demand was flattening.

Traders positioning ahead of USDA's U.S. planting intentions and quarterly stocks reports next week. Chicago brokerage The Linn Group projected U.S. 2012 soybean seedings at 76.7 million acres, above USDA's outlook forum figure of 75.0
million.

Market shrugs off news that analysts Oil World cut its forecast of Brazil's 2012 soybean crop by 1.5 million tonnes, to 66.5 million, due to drought and crop fungus.

FCPO- SINGAPORE, March 20 (Reuters) - Malaysian palm oil futures extended losses on Tuesday as some traders took profits on concerns that the market was overbought, although losses were limited by still-robust demand as indicated by export trends.

Palm oil rallied to a 9-month high of 3,418 ringgit last Friday on an upbeat price outlook, and traders said the market was poised for a correction.

"Prices ended lower in unison with CBOT and technical-based selling. It looks like the much anticipated correction is taking place currently and once that is completed, prices will resume their uptrend," said a trader with a local brokerage in Malaysia.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.2 percent to close at 3,366 ringgit ($1,093) per tonne, paring gains this year to 6 percent from a year-high 7.2 percent.

Traded volumes on Tuesday stood at 28,255 lots of 25 tonnes each, higher than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, March 20 (Reuters) - Most Southeast Asian stock markets rose on Tuesday as investors sought counters with attractive dividend yields, but profit taking capped gains, pulling Thailand's benchmark index back from the 1,200-point level for a second day.

Trader's Highlight

DJI- NEW YORK, March 19 (Reuters) - Apple lifted U.S. stocks on Monday after it announced regular dividends and share buy-backs, while benchmark U.S. Treasury yields hit a near five-month high as investors sold safe-haven government bonds.

Concerns about Iran's nuclear program added $1 to U.S. crude oil prices, while the euro climbed to its highest in more than a week against the dollar.

U.S. stocks traded in a choppy session as investors reassessed a rally that has taken the S&P 500 to levels not seen since the 2008 financial crisis. But a jump of more than 2 percent in Apple's stock price fueled gains for at least one more session.

"Investors have been reluctant to put money to work for a while, but Apple is giving greater confidence for them to invest in stocks," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

The Dow Jones industrial average <.DJI> added 6.51 points, or 0.05 percent, to end at 13,239.13, while the Standard & Poor's 500 Index <.SPX> gained 5.58 points, or 0.40 percent, to 1,409.75. The Nasdaq Composite Index <.IXIC> rose 23.06 points, or 0.75 percent, to close at 3,078.32.

NYMEX- NEW YORK, March 19 (Reuters) - U.S. crude oil futures rose for a second day in a row on Monday on persistent worries about supply disruption from Iran, higher equities and a weaker dollar.

Concern about supplies from Iran continued to roil the oil market due to EU and U.S. sanctions even though Tehran has agreed to a new round of talks with world powers on its disputed nuclear program.

On the New York Mercantile Exchange, crude for April delivery , which expires on Tuesday, settled at $108.09 a barrel, up $1.03, or 0.96 percent.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade reversed to close lower on profit-taking after export demand and concerns about a crop shortfall on South America lifted the market to a six-month high, traders said.

Traders said CBOT soybeans were overbought and due for at least a partial setback. Front-month May soybeans reached an overnight high of $13.78, the highest spot price since Sept. 15, 2011.

Softening cash soy markets in Brazil and parts of the United States added pressure. Unseasonably warm U.S. weather continues, and rainfall this week should boost 2012 corn and soy crop prospects. "The warm temperatures will continue for the next week to 10 days," said John Dee, meteorologist for Global Weather Monitoring.

FCPO- SINGAPORE, March 19 (Reuters) - Malaysian palm oil futures ended lower on Monday as investors booked profits on concerns the market was overbought, although losses were capped by upbeat demand prospects and soybean supply fears in drought-hit South America.

Palm oil prices hit a nine-month high of 3,418 ringgit last Friday, setting the stage for a price correction that pared gains to 6.2 percent so far this year.

"It's not surprising that the market came down today although the fundmentals didn't change. This is more of a correction and immediate support now is around 3,350 ringgit," said a trader with a foreign commodities brokerage.

But sentiment is still fairly bullish as market players expect Malaysia's strong export trend to continue as big buyers like China may increase edible oil shipments.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.7 percent to close at 3,373 ringgit ($1,105) per tonne. Traded volumes on Monday stood at 24,893 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

REGIONAL MARKET-BANGKOK, March 19 (Reuters) - Southeast Asian stocks ended mostly lower on Monday as worries about the impact of high oil prices on profit margins prompted investors to cash in on recent gains.

Singapore's Straits Times Index <.FTSTI> ended down 0.7 percent, after Friday's climb to a seven-month high amid upbeat corporate earnings, while the Philippine index <.PSI> fell 0.4 percent after hitting a record high of 5145.89 points in the
previous session.

Malaysia's biggest lender, Maybank , fell nearly 1 percent after a combined 1.8 percent gain in past four sessions. Manila's top listed firm Philippine Long Distance Telephone Co fell 1.7 percent, reversing its 1.5 percent rise on Friday.

RTRS-UPDATE 1-Allendale survey pegs 2012 U.S. corn acres 95.012 mln

March 16 (Reuters) - Allendale Inc. on Friday said a survey of farmers in 26 states conducted between Feb. 27 and March 9 indicated U.S. 2012 corn acreage at 95.012 million, the biggest corn area since 1944 and above last year's corn
plantings of 91.9 million.

The Allendale corn plantings number was below an estimate released by Informa Economics earlier this month of 95.513 million, above the U.S. Department of Agriculture's (USDA)forecast at its outlook forum of 94.0 million and well above
last year's U.S. corn plantings of 91.9 million.

USDA on March 30 will release its annual planting intentions report and its updated quarterly stocks report.

Allendale's forecast soybean area at 74.495 million was below Informa's recent forecast of 75.128 million and below the 75.0 million forecast by USDA at its outlook conference. It was also down from last year's soy seedings of 75.0 million.

The total wheat area pegged by the Allendale survey at 56.609 million is below the USDA's outlook forum forecast of 58.0 million and above last year's U.S. plantings of 54.409 million acres.

Other spring wheat acreage of 12.623 million forecast by Allendale is above last year's U.S. spring wheat area of 12.394 million.

Allendale said the survey data would imply a record large corn production of 14.092 billion, soybean production at 3.233 billion, the third largest crop on record and wheat production was implied at 2.116 billion acres, above last year's wheat
output of 1.999 billion bushels.

Trader's Highlight

DJI- NEW YORK, March 16 (Reuters) - Global stocks advanced on Friday, with a broad measure of U.S. equities rising to an almost four-year high after news of subdued inflation added to investment sentiment and helped fuel a retreat in government debt markets.

While the benchmark Standard & Poor's 500 index rose for a fifth straight week, gaining 2.4 percent for its best weekly performance since mid-December, the Dow and Nasdaq fell on Friday in a sign of caution after the run-up in U.S. stocks.

A report on U.S. consumer prices in February eased a hawkish view on interest rates, causing the dollar to fall and helping spur the sell-off in bonds. Improving U.S. economic data had recently sparked speculation that the Federal Reserve would raise rates sooner than its time frame of late 2014.

The Dow Jones industrial average <.DJI> ended down 20.14 points, or 0.15 percent, at 13,232.62. The Standard & Poor's 500 Index <.SPX> added 1.57 points, or 0.11 percent, to 1,404.17. The Nasdaq Composite Index <.IXIC> was down 1.11 points, or 0.04 percent, at 3,055.26.

NYMEX- NEW YORK, March 16 (Reuters) - U.S. crude oil futures rose on Friday, as worries of supply disruption from Iran resurfaced and the dollar weakened, enticing investors to raise their bets on the commodity.

U.S. inflationary pressures appeared contained, data on consumer prices showed, causing the dollar to pause from a rally as investors now expect lower odds that the U.S. Federal Reserve would tighten monetary policy anytime soon.

While gasoline prices rose sharply last month, consumers did not expect the run-up to last very long, the weekly Thomson Reuters/University of Michigan consumer survey showed.

On the New York Mercantile Exchange, crude for April delivery rose $1.95, or 1.86 percent, to settle at $107.06 a barrel. For the week, it fell 34 cents, or 0.32
percent after gaining in the week to March 9 at $107.40.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed higher for
a fourth straight day, lifted by U.S. export demand tied to a drought-reduced South American crop, along with a weaker dollar, traders said.

Deferred soybean contracts supported by concerns that U.S. farmers might not plant enough soybeans this spring to meet demand. Allendale Inc pegged U.S. 2012 soybean plantings at 74.495 million acres, down from 75.0 million in 2011, based on a
producer survey.

FCPO- SINGAPORE, March 16 (Reuters) - Malaysian palm oil futures were almost flat on Friday, as some traders booked profits from a nine-month high notched in the previous session, while strong exports and soybean supply fears in drought-hit
South America supported prices.

Palm oil recorded four straight sessions of gains this week on upbeat price forecasts at a recent industry conference and positive news that lifted the global economic outlook. Edible oil futures are trading almost 7 percent higher this year.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange gained one ringgit to close at 3,398 ringgit ($1,112) per tonne. Prices touched a new peak of 3,418 ringgit, a level not seen since last June.

Traded volumes on Friday stood at 24,583 lots of 25 tonnes each, slightly less than the usual 25,000 lots.

REGIONAL EQUITY-BANGKOK, March 16 (Reuters) - Philippine shares hit a fresh all-time high and Thai stocks climbed to their highest in almost 16 years on Friday, helped by selective buying in blue chip, but most other Southeast Asian stock markets fell as players locked in profits.

The Philippine main index <.PSI> ended up 2.3 percent at a record high of 5145.89 points, pushing gains for the week to 3.3 percent, its strongest weekly rise in almost five months.

It has been the best performer among larger markets in Southeast Asia so far in 2012, surging nearly 18 percent and eclipsed only by a 25 percent rise in Vietnam.

Trader's Highlight

DJI- NEW YORK, March 14 (Reuters) - The S&P 500 broke a five-day streak of gains on Wednesday as investors found little reason to extend a rally that took the benchmark index to four-year highs.

While the major averages ended essentially flat, three stocks fell for every gainer on the New York Stock Exchange, a sign of investors pulling back from gains that have lifted numerous blue-chips to 52-week highs. Procter & Gamble , the consumer products maker, hit a 52-week high at $67.95 before dipping 0.1 percent to close at $67.85. The stock of major U.S. oil company Chevron climbed to a 52-week high at $112.28 during the session, only to slip 0.5 percent to end at $110.69.

The Dow Jones industrial average <.DJI> rose 16.42 points,or 0.12 percent, to 13,194.10 at the close. The Standard & Poor's 500 Index <.SPX> slipped 1.67 points, or 0.12 percent, to 1,394.28. The Nasdaq Composite Index <.IXIC> inched up just 0.85
of a point, or 0.03 percent, to 3,040.73.

NYMEX- NEW YORK, March 14 (Reuters) - U.S. crude futures fell on Wednesday as rising crude oil inventories in the United States and the dollar's strength combined to pressure oil prices.

U.S. crude oil inventories rose 1.75 million barrels last week, the weekly report from the Energy Information Administration (EIA) said

On the New York Mercantile Exchange, April crude fell $1.28, or 1.2 percent, to $105.43 a barrel, having traded from $105.12 to $107.02.

CBOT SOYBEANS- Chicago Board of Trade soybean futures ended higher on dwindling
stocks after a drought in South America trimmed soy output.

Soy/corn spreading also supportive as the soybean market attempted to "buy" acreage ahead of the U.S. 2012 planting season. The December corn/November soybean ratio was at 2.32.

Soymeal closed firmer and soyoil ended weaker.

NOPA monthly crush report showed U.S. February soybean crush at 136.350 million bushels, below 142.813 million in January and above an average of analysts' estimates for 134.5 million bushels.

FCPO- SINGAPORE, March 14 (Reuters) - Malaysian crude palm oil futures rose to a nine-month high on Wednesday as recovering exports raised demand prospects for the edible oil and upbeat U.S. economic data lifted investor confidence.

While the U.S. Federal Reserve provided few clues on further monetary easing, it offered a slight upgrade to its economic outlook, which together with rising retail sales reinforced the view the world's biggest economy is on the road to recovery.

An improvement in Malaysian exports for the first ten days of March has also helped palm oil extend its gain to 6.6 percent this year, although optimism was somewhat clouded by an unexpected rise in February palm oil stocks.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange rose 0.6 percent to close at 3,385 ringgit ($1,110)per tonne. Prices touched a new high of 3,395 ringgit, a level not seen since last June.

Traded volumes on Wednesday stood at 24,003 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, March 14 (Reuters) - Southeast Asian stocks climbed on Wednesday, with Philippine shares setting a record high, as upbeat U.S. economic data helped stoke appetite for risk and demand for growth stocks lifted consumer and banking shares.

The Philippine index <.PSI> finished up 0.9 percent. The index hit an intraday peak of 5,070.20, breaching the previous intraday all-time high of 5,039.29 set on March 6.

UBS upgraded its year-end target for the benchmark Straits Times Index to 3,350 from 3,200 driven by expectation of some upgrades in earnings forecasts.

In Singapore, United Overseas Bank Ltd gained 2.6 percent, with CIMB Research upgrading the stock to outperform from neutral, citing a minor underperformance after fourth-quarter results.

Kuala Lumpur-listed AirAsia Bhd , Asia's largest budget carrier, rose 1.4 percent, recouping some of the combined 4.4 percent losses of past five sessions.

RTRS-NOPA February U.S. soy crush seen at 134.5 mln bu

CHICAGO, March 13 (Reuters) - The National Oilseed Processors Association's monthly soybean crush data slated for release on Wednesday should show the U.S. crush for February at 134.5 million bushels, analysts projected on Tuesday.

Trade estimates ranged from 129.5 million to 139.5 million bushels. NOPA reported the January crush at 142.813 million bushels and February 2011 at 124.884 million bushels.

The average analyst estimate for February U.S. soyoil stocks was 2.126 billion lbs, up from NOPA's January figure of 2.098 billion lbs. Forecasts ranged from 2.048 billion to 2.200 billion lbs.

RTRS-FUND VIEW-Baring favours palm oil, fertiliser firms

LONDON, March 13 (Reuters) - Crude palm oil is a good bet this year as supply tightens after strong production in 2011 left trees stressed and diminished their ability to produce the commodity, the co-manager of Baring Global Agriculture Fund said.

James Govan told Reuters he was also bullish about fertilisers and said North America would likely be the strongest market for them this year because the continent is due to have a large corn acreage and corn is a fertiliser-intensive crop.

The UK-based fund invests in palm oil companies, in part because Indonesia and Malaysia produce around 85 percent of the oil, making it quite concentrated in terms of supply, and also because the stocks-to-use ratio is tight at 8.2 percent, Govan said.

"It is also a relatively cheap vegetable oil, trading at a discount to most of the other vegetable oils and in particular trading at a discount to soy oil," he said.

He added that the long-only fund was interested in increasing its exposure to crude palm oil plantations, which currently make up 9.4 percent of its holdings.

Trader's Highlight

DJI- NEW YORK, March 13 (Reuters) - The U.S. stock market posted its best day this year, with Tuesday's late spark coming from JPMorgan Chase & Co after the bank announced it will raise its dividend.

JP Morgan's news preceded the Federal Reserve's release of results from its latest stress tests of U.S. banks. Most of the top banks did well and their shares extended gains in trading after the closing bell.

Stocks advanced throughout the session, helped by stronger-than-expected retail sales and benign comments from the U.S. Federal Reserve, which said recent strains on financial markets were easing.

The Dow Jones industrial average jumped 217.97 points, or 1.68 percent, to close at 13,177.68. The Standard & Poor's 500 Index <.SPX> rose 24.86 points, or 1.81 percent, to 1,395.95. The Nasdaq Composite Index <.IXIC> climbed 56.22 points, or 1.88 percent, to 3,039.88.

NYMEX- NEW YORK, March 13 (Reuters) - U.S. crude futures ended higher on Tuesday on positive domestic and German economic data coupled with a modestly brighter outlook from the U.S. Federal Reserve.

U.S. retail sales rose 1.1 percent in February, the biggest gain in five months. Americans bought more motor vehicles even though they had to pay more for gasoline and other goods, Commerce Department data showed. [ID:nL2E8ED15O]

The data added to recent improvements in the U.S. economy, which the Federal Reserve acknowledged in a statement released after a one-day meeting of its policymakers. The U.S. central bank gave no clues, however, for further monetary easing.

The Fed reiterated it would maintain exceptionally low interest rates until at least through 2014, even though the economy was "expanding moderately", saying there were still significant downside risks.

On the New York Mercantile Exchange, crude for April delivery settled at $106.71 a barrel, gaining 37 cents, or 0.35 percent.

CBOT SOYBEANS- Chicago Board of Trade soybean futures closed higher on
dwindling stocks of soy, estimates for reduced soy output in South America and soy/corn spreading as the soy market attempts to "buy" acres from corn for the 2012 U.S. seeding season.

Technical fund buying, gains in crude oil and higher equities markets were combining to lift soybean futures as well.

Soymeal closed higher and soyoil closed higher.

Trade sources said crop scout Michael Cordonnier lowered his estimate of Brazil's soybean crop to 67.0 million tonnes from his previous estimate for 68.0 million. USDA in its March crop report forecast Brazilian soybean production at 68.5
million tonnes.

The National Oilseed Processors Association's monthly soybean crush data slated for release on Wednesday should show the U.S. crush for February at 134.5 million bushels, analysts projected on Tuesday.

FCPO-KUALA LUMPUR, March 13 (Reuters) - Malaysian crude palm oil futures edged up on Tuesday, as traders bet energy markets would hold firm and eyed the outlook for U.S. corn plantings, which could take more acreage from soybeans and limit global edible oil supply this year.

Traders were also looking out for the U.S. Federal Reserve's policy statement later in the day, which may reinforce a view from recent upbeat data that the world's biggest economy is on the road to recovery.

Palm oil tends to gain from a weaker greenback as the dollar-denominated edible oil becomes cheaper for buyers holding other currencies, but can be hit by a stronger dollar.

An unexpected rise in Malaysian palm oil stocks on Monday reined in the market, which has gained 6 percent so far this year, although a recovery in exports for the first ten days of March kept investors upbeat.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange rose 1.5 percent to close at 3,365 ringgit ($1,111) per tonne.

Traded volumes on Tuesday stood at 22,597 lots of 25 tonnes each, lower than the usual 25,000 lots, as some traders shunned big moves ahead of the U.S. Fed decision.

REGIONAL EQUITY- BANGKOK, March 13 (Reuters) - Southeast Asian stock markets were mostly higher on Tuesday after a choppy session, with Singapore climbing to a one-week high as property shares led the way on hopes about the positive spillover of China's
efforts to boost consumer demand.

Trading volume was generally light and market players appeared reluctant to chase regional stocks further while waiting to see what the U.S. Federal Reserve says later on
Tuesday.

In Singapore, CapitaMalls Asia Ltd was the top gainer on the Straits Times Index, rising 4.6 percent. Carey Wong, an investment analyst at OCBC Investment Research, said China's lower export figures showed it would have to boost domestic consumption to sustain growth, and CapitaMalls stood to benefit from rising consumption and spending.

RTRSUPDATE 1-Malaysia's Feb palm oil stocks rise unexpectedly, prices to fall

KUALA LUMPUR, March 12 (Reuters) - - Malaysia's palm oil stocks rose unexpectedly in February as a decline in exports outpaced a fall in output, industry regulator Malaysian Palm Oil Board said on Monday, potentially weighing on prices.

Stocks in the world's No.2 producer of the edible oil rose 2 percent to 2.06 million tonnes from January, going against market expectations for a 3 percent drop and snapping four straight months of declines.

Inventories at above 2 million tonnes suggest Malaysia has been losing market share to Indonesia, which has been offering discounts on cargoes after Jakarta slashed export taxes for refined product cargoes.

Although ample stocks in Malaysia can shore up global edible oil supply in the wake of erratic weather affecting South American soy crops, palm oil futures may come under pressure after slipping 0.2 percent ahead of the data release.

"A few people are going to get caught out," said a trader with a foreign commodities brokerage in Kuala Lumpur as the market had been rallying on expectations of strong Asian demand chasing limited edible oil output growth.

RTRS-INDIA'S FEB REFINED PALM OIL IMPORTS SEEN TREBLING VS JAN AS INDONESIA TAX CHANGES HIT-REUTERS SURVEY

NEW DELHI, March 12 (Reuters) - India's refined palm oil imports nearly trebled in February from the previous month after changes in Indonesia's export taxes and this pace could continue, putting refiners in the world's largest edible oils importer at risk of closure.

Total palm oil imports -- the bulk of India's edible oil purchases -- rose 28 percent last month to 654,167 tonnes, according to the average of a survey of eight traders, with soyoil imports seen up 69.7 percent over January.

Traders said imports of refined palm oil ranged between 250,000-300,000 tonnes in February, sharply higher than the 114,033 tonnes imported in January.

"Refined palm oil imports almost trebled last month due to the lower Indonesian export tax," said K.K. Goel, a Delhi-based trader.

Refined palm oil imports rose as the spread with crude palm oil narrowed to $35 per tonne from about $63 per tonne in October, when Indonesia, the world's top palm oil producer, lowered its export tax on the refined oil.

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.

Trader's Highlight

DJI-NEW YORK, March 12 (Reuters) - Defensive names rallied in an otherwise flat day for Wall Street on Monday as investors paused after recent gains and looked ahead to the Federal Reserve's monetary policy statement.

Investors will eye Tuesday's statement from the U.S. central bank's Federal Open Market Committee to see whether the Fed will cool down expectations of more easing of monetary policy, which might make it difficult to extend the rally.

Markets were recently rattled after Fed Chairman Ben Bernanke stopped short of giving a strong signal of more stimulus during congressional testimony.

The Dow Jones industrial average <.DJI> added 37.69 points, or 0.29 percent, to 12,959.71 at the close. The Standard & Poor's 500 Index <.SPX> inched up just 0.22 of a point, or 0.02 percent, to 1,371.09. But the Nasdaq Composite Index <.IXIC>
dipped 4.68 points, or 0.16 percent, to close at 2,983.66.

NYMEX- NEW YORK, March 12 (Reuters) - U.S. crude futures ended lower for the first time in four sessions on Monday as gloomy economic data from China and Italy added to fears that slowing global economic growth would zap demand for oil.

China posted its biggest trade deficit in at least a decade in February, fueling concerns that global demand is weakening.

Italy, the euro zone's third largest economy, slid into recession as fourth quarter 2011 data showed its economy shrank 0.7 percent, extending an 0.2 percent GDP decline in the third quarter.

On the New York Mercantile Exchange, crude for April delivery settled at $106.34 a barrel, falling $1.06, or 0.99 percent, after trading from $105.38 to $107.56.

CBOT SOYBEANS- Chicago Board of Trade soybean futures closed lower on profit-taking after they rallied last week to 5-1/2 month highs and on corn/soybean spreading.

Light showers in the U.S. Midwest and Plains accompanied by mild temperatures were boosting winter wheat prospects and adding valuable soil moisture ahead of spring planting of corn and soybeans.

"Overall a good outlook today for crops, it will be very mild for the next week to 10-days and there is no cold weather in sight," said John Dee, meteorologist for Global Weather Monitoring.

FCPO- KUALA LUMPUR, March 12 (Reuters) - Malaysian crude palm oil futures eased on Monday, as weak Chinese exports and a slightly bearish U.S. soybean report offset the bullish sentiment that had propelled prices to 9-month highs last week.

China posted its largest trade deficit in at least a decade, fanning concerns that slowing exports from the world's second largest economy will hurt global growth, as well as demand for palm oil.

The U.S. Department of Agriculture report on Friday was also slightly bearish on soybean oil prices, showing the fall in total consumption outpaced the decline in production.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange lost 1 percent to close at 3,317 ringgit ($1,097) per tonne. Prices hit a 9-month high of 3,368 ringgit on Friday.

Traded volumes stood at 27,074 lots of 25 tonnes each, slightly higher than the usual 25,000 lots.

REGIONAL EQUITY-BANGKOK, March 12 (Reuters) - Southeast Asian stock markets were weaker on Monday as market players cashed in recent gains in regional big caps on bearish Chinese trade data and awaited signals from a U.S. Federal Reserve meeting on Tuesday.

Big name energy shares pulled lower along with global oil prices which fell on Monday for the first time in four sessions amid profit taking. Among weak spots, Telekom Malaysia Bhd dropped 2.5 percent, its biggest daily loss in more than two months, and Indonesia's biggest firm by market value Astra Internatiional Tbk lost 0.6 percent after a combined 1.5 percent gain the past two sessions.

RTRS-Brazil's No. 3 soy state cuts forecast by mln T due drought

SAO PAULO, March 7 (Reuters) - Brazil's third largest soy producing state of Rio Grande do Sul will harvest a crop of 7.1 million tonnes this season, down from the 8 million forecast previously, the state agriculture agency projected on Wednesday.

The southernmost state has been one of the worst hit by drought that has withered crops in the region, including Paraguay and Argentina.

This has sparked concerns of rising global food prices because the region produces more than half the world's trade in soybeans, an important source of protein for humans and livestock.

Brazil's federal crop supply agency Conab is due to release its sixth forecast of the national grains crop on Thursday morning. Many expected it would revise downward its numbers for national output of soybeans.

Brazil harvested a record 75.3 million tonnes last year.

But below-normal rainfall from November into January has slashed output to just over 69.2 million tonnes in Conab's February forecast.

RTRS- INDIA'S 2011/12 REFINED PALM OIL IMPORTS COULD MORE THAN DOUBLE TO 2.3-2.4 MLN TONNES - LEADING TRADER

NEW DELHI, March 7 (Reuters) - India's refined palm oil imports could more than double in the year to Oct. 31, 2012 and rise to 2.4 million tonnes as a result of an export tax change by leading producer Indonesia, a leading trader and edible oils industry expert said on Wednesday.

Total edible oil imports will increase 13.1 percent to 9.5 million tonnes in 2011/12, as rapeseed output drops while demand rises, Govindbhai G. Patel, managing partner of GG Patel & Nikhil Research Co., told Reuters.

"The bulk of the imports will be palm oils with the share of the refined variant set to double this year," Patel said in a telephone interview from Kuala Lumpur.

"The lower Indonesian export tax will push up imports of refined palm olein to 2.3-2.4 million tonnes in 2011/12."

India is the world's biggest buyer of vegetable oil, importing mainly palm oil from Indonesia and Malaysia and a small quantity of soyoil from Brazil and Argentina.

India imported 1.08 million tonnes of refined palm oil in 2010/11.

Demand for edible oils is rising at around 3-4 percent per year, faster than population growth, as increased incomes in an economy growing at around seven percent encourage people to indulge in high-calorie, fried foods.

RTRS- WRAPUP 1-Palm oil prices to shine in 2012; Indonesia export tax in focus

KUALA LUMPUR, March 7 (Reuters) - Strong Asian demand chasing limited edible oil supply may boost palm oil prices that have gained six percent in February, reflecting the appeal of food commodities at a time of shaky global growth and rising geopolitical tension.

Analysts and traders at an industry meeting in Kuala Lumpur are shifting their focus to demand from top buyers India and China with limited palm oil output growth in Southeast Asia helping a little to offset the shortfall in soyoil after drought in South America withered crops.

But they warned of greater volatility in Bursa Malaysia futures as top palm oil producer Indonesia's move to slash export taxes for the refined grade will shift demand away from second biggest supplier Malaysia and boost stock levels.

Trader's Highlight

DJI- NEW YORK, March 7 (Reuters) - U.S. and European stocks advanced on Wednesday after promising U.S. jobs data, and the euro rebounded after hitting a three-week low on renewed optimism that Greek will complete its debt restructuring after major banks and pension funds pledged their support.

Completion of the debt restructuring is crucial for Greece to secure 130 billion euros in international rescue funds needed so it can avert a chaotic default.

Some traders are hoping Greece will clinch a debt restructuring before Thursday's deadline. This outlook helped revive appetite for stocks, oil and gold and kept a lid on safe-haven demand for U.S. and German government debt.

A report from payrolls processor ADP showing that U.S. private-sector hiring increased more than expected in February helped cement views that the U.S. economy is gaining traction.

The report came two days ahead of the government's more comprehensive monthly report on the labor market.

The Dow Jones industrial average <.DJI> closed up 78.18 points, or 0.61 percent, at 12,837.33. The Standard & Poor's 500 Index <.SPX> ended up 9.27 points, or 0.69 percent, at 1,352.63. The Nasdaq Composite Index <.IXIC> finished up 25.37 points, or 0.87 percent, at 2,935.69.

NYMEX- NEW YORK, March 7 (Reuters) - U.S. crude futures rose on Wednesday on optimism that Greece will avoid default through a pending debt restructuring, which strengthened the euro and weakened the dollar, and on supportive private sector jobs data.

Major banks and pension funds supported Greece's bond swap offer to private creditors, improving chances the deal will be implemented and clear the way for a bailout package to avert an immediate default by Greece on its debt.

On the New York Mercantile Exchange, April crude rose $1.46, or 1.39 percent, to settle at $106.16 a barrel. The intraday low was $104.35 and prices reached $106.55 in post-settlement trading.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade fell in sympathy with technical and fund-driven selling in corn and wheat ahead of a monthly U.S. government crop report later this week, traders said.

Spot soybeans hit a fresh 5-1/2 month high in overnight trade at $13.32-1/4 before retreating.

Market underpinned by uncertainty about the size of the South American soy crop. Brazil's No. 3 soy producing state of Rio Grande do Sul will harvest a crop of 7.1 million tonnes this season, down from the 8 million forecast previously, the state
agriculture agency projected.

U.S. dollar edged lower, typically a bullish signal for dollar-backed grains and oilseeds, but concern about the global economy, euro zone debt and the pace of growth in China hung over the soy market.

FCPO- KUALA LUMPUR, March 7 (Reuters) - Malaysian crude palm oil futures edged up on Wednesday, as bullish price outlook from leading analysts at a key conference lifted investor sentiment and reversed earlier losses.

Leading analyst Dorab Mistry said prices would hit 4,000 ringgit by the end of June due to low palm oil output cycle, strong demand from India in peak summer months and stocking by Muslim countries ahead of the fasting month. [ID:nL4E8E73NX]

"Markets were pathetically quiet ahead of the analysts' price forecasts, and prices were stuck within tight range. However, bullish views are expected and that will likely put sellers on hold," said a dealer with a foreign commodities
brokerage in Kuala Lumpur.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.7 percent to close at 3,266 ringgit ($1,080) per tonne. The benchmark futures are trading 2.8 percent higher this year. Traded volumes picked up after the midday break, standing at 22,106 lots of 25 tonnes each, compared to the usual 25,000
lots.

Top analyst James Fry presented a few scenarios based on crude oil price and its impact on palm oil futures, given the edible oil is being increasingly used as a feedstock for biofuels.

REGIONAL EQUITY- March 7 (Reuters) - Southeast Asian stocks fell on Wednesday with Singapore hitting a one-month low as Asian investors continued to worry over slowing global growth.

With global stock markets under pressure and as the effects of central bank easing wear off, market players are turning to corporate earnings for signs of whether the year-to-date rally in equities can be sustained.

Singapore's Straits Times Index <.FTSTI> fell 0.6 percent, extending its losses this month to 2.5 percent. Indonesia's benchmark <.JKSE> fell 0.6 percent while last year's top performer in the Philippines <.PSEI> was down 0.9 percent.

Malaysia <.KLSE> fell 0.9 percent. Thailand's SET index <.SETI>, hovering near a 16-year high, was closed for a public holiday.

Of the 175 Singapore stocks tracked by Thomson Reuters Starmine, about 83 percent have reported 2011 earnings and just under half of those have missed analyst expectations.

The liquidity-driven rally had pushed valuations back to normal levels, Chua said, removing a factor underpinning stock prices so far this year.

Singapore's Straits Times index currently trades at about 13.5 times forward 12-month earnings forecasts, up from 12 times last December, according to Thomson Reuters I/B/E/S.

RTRS-HIGHLIGHTS-Top analysts call the palm oil markets for 2012- DORAB MISTRY, ANALYST AND TRADER, GODREJ

KUALA LUMPUR, March 7 (Reuters) - Following are estimates on palm oil prices and other edible oil markets from leading analysts at the Bursa Malaysia conference that ends on Wednesday.

DORAB MISTRY, ANALYST AND TRADER, GODREJ

PRICE OUTLOOK

Soft U.S. dollar will continue until end of 2012. Brent crude prices to range between $100 to $120.

Expects palm oil prices to peak at $1,250 FOB, or about 4,000 ringgit, by the end of June 2012, thanks to low output cycle, demand from India in peak summer months and stocking by Muslim countries ahead of fasting observance in July.

See a pullback after June with prices remaining in a band of $1,150 to $1,200 FOB. Prices seen declining only after there is evidence that the low cycle is ending, around November 2012.

For the second half, it depends on production. Based on this prognosis, in terms of refined, bleached and deodorised palm olein, April-May-June and July-August-September should trade at a considerable inverse to October-November-Decembt.

Expects degummed soyoil to peak at between $1,250 and $1,300 FOB. Sees Chicago bean oil futures to climb to 60 cents despite the improvement in meal prices on limited acreage for U.S. soybeans and strong soyoil use in South American biofuel sector.

Expects lauric oils to trade higher than at present. Coconut oil will go to a discount to crude palm kernel oil (CPKO) and should trade to a high of $1,550 CIF Rotterdam. CPKO will peak at $1,700 CIF Rotterdam.

GLOBAL SUPPLY/DEMAND

Global demand growth seen at 6 million tonnes in the current Oct-Sept crop year, compared to 5.3 million tonnes rise in edible oil production.

Demand from the food sector up as world economic growth seen rising by three percent although high prices will limit the demand growth to 3 million tonnes. As for biodiesel industry growth, issues in Iran will boost prices and lift the appeal of renewable energy.


SUPPLY FACTORS- PALM OIL

Crude palm oil output will be the single most important factor driving edible oil prices in 2012. Biological high cycle for palm oil production ended in December and there are now signs of tree stress.

The new low cycle will result in flat output for 2012. From March onwards, output each month will be less on a year-on-year comparison. Low cycle will end in November this year.

Keeps same estimate for Malaysian 2012 production which first issued in December. Output seen flat between 18.6-19 million tonnes. (Official Malaysian forecast is 19.3 million tonnes versus 18.9 million tonnes in 2011).

Estimates Indonesian production will be higher by about 1.4 million and will reach 26.5 million tonnes this year on maturing acreage.Official Indonesian forecast is an increase of 14 percent to 25.7 million tonnes.[ID:nL3E8C933G]

Says Malaysia's move to continue tax-free export quota for crude palm oil "can be a clever strategy if they will keep releasing more quota from time to time.

Says more Malaysian crude palm oil exports will keep stocks down and keep futures high although refineries and oleochemical plants will become idle like its biodiesel industry.

Other option is to adopt a carbon copy of the Indonesian export tax regime where tariffs of refined grade are half of that of the crude grade and do away completely with the duty-free export quota for crude palm oil.

Consumers like India, China and Pakistan unlikely to retaliate against Indonesia's tax change to protect their own refining sector as inflation in these countries remain high.


INDIA

Greater food demand to come from India's plan for a massive food security programme that will guarantee minimum amounts of cereals and food to each citizen at subsidised prices.

"When implemented it will create a large further burden of food subsidies and will also increase total Indian consumption of food grains. It is a bold step but one which is not before time."

India's edible consumption seen at a record 13.18 kilogram per capita in the current crop year, up 1.7 percent from a year ago that represents slowing growth due to high prices of vegetable oils.

India likely to buy a record 7.2 million tonnes of palm oil in Nov-Oct oil marketing year, up 8 percent from a year earlier. Soyoil imports seen flat at one million tonnes.

India's total vegetable oil imports to rise 9.3 percent to 9.48 million tonnes from a year ago on lower domestic production of rapeseed and stagnant yields.

RTRS-HIGHLIGHTS-Top analysts call the palm oil markets for 2012

KUALA LUMPUR, March 7 (Reuters) - Following are estimates on palm oil prices and other edible oil markets from leading analysts at the Bursa Malaysia conference that ends on Wednesday.

THOMAS MIELKE, EDITOR, OIL WORLD

PRICE FORECAST

"Under the lead of soybean oil, I expect vegetable oil prices to appreciate in the coming months. Although we have already appreciated quite considerably since January, we could see another increase in soybean oil prices by $80-$100 until the end of June, driving up also palm oil and other vegetable oils.

"For palm oil, there is an interesting development shaping up for April-September, following an unusually big increase in production and exports until March, the past 12 months until this March, the growth in production and exports in April-September, will be very small."

"This isn't in the market yet -- this is price supportive. Our price forecasts for the calendar year -- we will make a new record for the average of calendar year 2012 in palm oil and soybean oil."

"RBD palm olein for Malaysia $1,180. Crude palm Rotterdam $1,150. Argentine soybean oil $1,250. The premium of lauric oils relative to palm oil will narrow. My preliminary forecast for palm kernel oil is $1,400."


INDIA AND CHINA

"A slowing down of the soybean crush, will create some additional bullish potential for oils and fats. Now we are at a point where prices are in an uptrend, and I would like to point that this uptrend will be continuing and that we're going to face a relatively tight outlook for April-June, with appreciating palm oil prices within the next three months.

"Despite the boost in palm oil (output), prices weakened only slightly and already bottomed at $950 and is now moving upward, and we're not yet at the highs - prices are likely to go further up."

"India and China, the two major net importing areas, both countries need considerably more palm oil in the current season. They need approximately (extra) 2 million tonnes of oils and fats imports every year, to satisfy their demand."

"The price outlook is for higher prices, despite a further increase in palm (production) by more than 2 million tonnes."


SOYBEAN OUTLOOK:

"Soybean and rapeseed production are declining - first time ever that this has happened. We are going to see a global production deficit of around 14 million tones in the current season. Production is declining and stocks are declining.

"Quite a bullish scenario, and this is happening mainly in soybeans. For the first time ever, global soybean production is going to decline by approximately 20 million tonnes. The drought is over, weather conditions have improved but the improvement came too late."

"Very poor crop in Paraguay, very poor crop in Brazil, and now the problem is too much rain rather than insufficient."

"Soybean prices move higher, and what we've seen over the past eight weeks is a beginning but its not all of the price impact. We could see, after a temporary setback, we should see higher prices in the second half of March, probably early April."

PALM OUTPUT

"Over the past 20 years world (palm oil) production more than doubled, but it's still not yet sufficient to satisfy demand. Is palm oil production rising sufficiently? It is very clear, due to biodiesel programs in South America, we need accelerating growth in palm. (For) outlook for 2012, we believe there will be a slowing down of the

"(Production) growth here in Malaysia after last year's very good increase in yields and production. We now look at a more moderate growth of 0.4-0.5 million tones � most of this already occurring in January-March."

"Indonesia, our very preliminary estimate (is) 1.6 million tones growth to approximately 25.5 million tones in production this year. This means a global increase of approximately 2.3 million tones in 2012, this is not enough to offset insufficient production of other vegetable oils."

"We need at least 78 million tones of palm in 2020 (and) I doubt that the expansions programs currently in place in new plantings, are on track to reach this estimate."

JAMES FRY, CHAIRMAN, LMC INTERNATIONAL

PRICE FORECAST

Says if today's high crude oil prices will stay for the year and Indonesian export subsidies for refiners set the seasonal floor to Malaysian palm oil stocks at 1.85 million tonnes, Bursa Malaysia palm oil price this year will average 3,250 ringgit ($1,073), with the average palm kernel oil price 530 ringgit higher.

says if stocks are 0.3 million tonnes lower (at 1.55 million) at the low point, then the average CPO price is 3,350 ringgit.

says if Brent crude price falls steadily towards $86 per barrel by the end of the year, then the average crude palm oil price over the course of 2012 will be 2,870 ringgit.

says if there is an Iranian nuclear crisis, leading to the closure of the Straits of Hormuz, the 2012 average crude palm oil price will be 3,190 ringgit, but with a low of 1,870 ringgit.


INDONESIA EXPORT TAX

Says Malaysian stocks inextricably linked to events in Indonesia. End-month palm oil stocks were the highest ever for January in both countries.

Says Malaysian government has signalled "business as usual" in setting the crude palm oil tax-free export quota at 3.6 million tonnes this year;

Says this is the year when market should see impact of the new export tax regime in Indonesia with its incentives for refiners.

Malaysian refined oil exporters will have to concede market share to Indonesia. This will push more of the world stocks onto Malaysia.

PALM OIL OUTPUT

Revises estimates of Indonesian crude palm oil output. Output seen at 22.2 million tonnes in 2010, 25.15 million last year and 27.6 million tonnes this year.

For Malaysia, keeps 2012 forecast at 18.9 million tonnes unchanged from the previous year. ($1 = 3.027 ringgit)