RTRS- Indonesia's SMART sees 2013 palm oil output rising by up to 10 pct

NUSA DUA, Indonesia, Nov 30 (Reuters) - Indonesia's biggest palm oil producer SMART SMAR.JK expects its 2013 output to rise by as much as 10 percent on the year to around 2.4 million tonnes as more plantations mature, a company executive said on Friday.

SMART, or PT Sinar Mas Agro Resources & Technology, is likely to produce about 2.2 million tonnes of palm oil this year, Susanto, chief executive of the company's West Kalimantan operations, told Reuters.

"For next year, hopefully there will be an increase of 5-10 percent," Susanto said on the sidelines of the 8th Annual Indonesian Palm Oil Conference.

"We have new areas and more mature areas, especially in Central Kalimantan," he added.

SMART runs the Indonesia palm oil operations of its Singapore-listed parent Golden Agri-Resources GAGR.SI.

The company had earlier estimated output to rise by about 8 percent a year over the next five years.

Susanto manages 30,000 hectares of palm plantations in West Kalimantan, producing 40,000-45,000 tonnes this year. He said that volume is likely to rise 10-15 percent in 2013.

Malaysia and Indonesia account for about 90 percent of the world's annual palm oil production of about 45 million tonnes.

This year, Europe's financial woes coupled with an economic slowdown in top buyers India and China, have cut demand for the edible oil and pushed inventories in second-largest producer Malaysia to record highs.

The rising stocks have shaved a quarter off the value of palm oil futures FCPOc3 this year, and many analysts at the conference see little let-up in early 2013.

INFRASTRUCTURE UPGRADE

Palm oil stocks in Indonesia, the world's top producer, are more than 4 million tonnes at present and capacity is between 5-6 million tonnes, said Joelianto, trading director at SMART.

To offset falling demand, government officials in Indonesia have called on the palm industry to build bigger storage capacity, and increase domestic use of biofuels.

Joelianto, however, said the biggest challenge to the industry in Indonesia was the lack of bigger waterways and new ports to quickly ship out palm oil and ease high stock levels.

"The government has not done anything concrete yet," said Joelianto, adding that many palm firms were now building their own jetties. "We need more infrastructure, especially deeper ports that can handle bigger volumes."

Earlier this month, the Indonesian Vegetable Oil Association said modernising Indonesia's state-owned ports was crucial to handle the rapidly expanding refined palm oil output.

Crude palm oil shipments were also affected by dry weather conditions and falling water levels on a river in West Kalimantan in June.

"If Indonesia's palm oil (output) is growing by 2-2.5 million tonnes per year, we must have ports that can handle that kind of volume," Joelianto said.

RTRS- Palm oil prices set for a volatile 2013 in oversupplied market

NUSA DUA, Indonesia Nov 30 (Reuters) - Palm oil prices are set to start 2013 on a sour note as record high stocks and rising output in Southeast Asia overwhelm already weak demand, while regulatory uncertainty in top buyers India and China adds to the gloomy outlook.

Analysts and traders at an industry meeting in Bali expect the world's biggest palm oil producers, Indonesia and Malaysia, to boost supplies next year, barring any weather disruptions.

An increase in the amount of edible oil on the global market is likely to further weigh on benchmark Malaysian futures 0#FCPO:, which are set to post their worst annual performance this year since the 2008 financial crisis. The profits of big palm oil firms, such as Singapore's Wilmar WLIL.SI and Malaysia's Sime Darby SIME.KL, are also likely to be eroded.

While lower prices will attract food demand, appetite could be curbed by possible regulations by China and India. India, the world's biggest buyer, may set higher taxes on edible oil imports to protect oilseed farmers, and China launches strict quality curbs for imports on Jan. 1.

"I am steadily coming to the conclusion that the days of supernormal profits in palm oil cultivation are coming to a close," influential palm oil market analyst Dorab Mistry said.

"Overall I expect vegetable oil prices to remain rangebound in the first half of the year and to begin a major bear market in the second half," he told the conference.

Mistry, who handles the edible oil trading portfolio for India's Godrej Industries, forecast palm oil to "break down" if India hiked import taxes.

Otherwise, palm oil futures will trade between 2,300 and 2,600 ringgit between now and February 2013, as high stocks more than make up for strong Asian demand growth, he said.

Other analysts and traders surveyed by Reuters at the meet also saw palm oil prices averaging 2,500 ringgit next year, or 17 percent off this year's average of 3,016 ringgit.

SOAKING UP MORE SUPPLY

Palm oil is now trading at above 2,350 ringgit, sharply lower than year-ago levels of above 3,000 ringgit.

Prices next year will be affected by the performance of benchmark Brent crude oil and the Chinese quality requirements, said James Fry, chairman of consultancy LMC International.

"There are three possible outcomes," he said, referring to the Chinese curbs. "More crude palm oil or crude olein imports for refining, more polishing of RBD olein imports and maybe more fractionation of RBD palm oil imports."

Higher crude prices could boost the appeal of Asian palm oil, and shrink Malaysian inventories to 1.8 million tonnes by June 2013 from a record 2.5 million in October, Fry said.

Palm futures are unlikely to change too much from current levels if Brent futures fall to around $90 a barrel, he added. If Brent stays at around $110, palm oil could hit 2,950 ringgit.

Palm oil demand has fallen this year, crimped by financial woes in Europe and economic slowdown in China.

Next year, producers will also have to contend with even higher supplies from both Malaysia and Indonesia, which makes for a challenging market unless the global economy picks up.

Mistry, in his first estimate of Indonesian output, forecast production to rise to 29.5 million to 30 million tonnes in 2013 from a projected 27.5 million this year, exceeding estimates by the official industry association GAPKI.

He also forecast Malaysian output growing at a slower pace, to 19 million tonnes next year, from an estimated 18.4 million this year.

Not all analysts, however, rue the increase in supply.

Thomas Mielke, editor of Hamburg-based research house Oil World, believes the increase in palm oil supply will help fill the gap left by a decline in soybean production in the Americas.

He forecast crude palm oil prices, now trading at a record $350 discount to soybean oil, would start rising as more customers make the switch.

"Global soybean supplies are tight," he said. "I expect that palm oil futures will appreciate to 3,100 to 3,200 Malaysian ringgit sometime in March, April, May 2013."

Indonesia's rapidly expanding edible oil processing industry is also likely to help soak up the extra output.

Indonesia's Palm Oil Board forecast total palm oil consumption to rise to about 7.5 million tonnes next year, from an expected 7 million this year.

Jakarta is also considering increasing tax incentives to encourage palm oil companies to set up refineries, a government adviser said, as it develops its downstream sector to compete with Malaysia and draw in more export earnings.

RTRS-Palm oil slips on investor caution, set for third monthly loss

SINGAPORE, Nov 30 (Reuters) - Malaysian palm oil futures edged lower on Friday and were heading for their third straight monthly loss, with investors staying cautious after top analysts warned that record high stocks will weigh on prices in the new year.

But losses were limited by a surprise increase in Malaysian exports in November to 1.66 million tonnes from 1.6 million tonnes seen in October, easing concerns that record high stocks would climb further for the month.

 

"The export surprise is likely to limit the downside because end-stocks are going to be flat to slightly lower for November. The market is also taking some time to digest the analysts' comments," said a dealer with a foreign commodities brokerage in Malaysia.

By the midday break, the benchmark February contract FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to 2,372 ringgit ($780) per tonne. For the month, prices were on track for a 5 percent loss.

Total traded volumes were thin at 8,342 lots of 25 tonnes each compared to the usual 12,500 lots, highlighting investor caution.

Technicals showed palm oil's target at 2,353 ringgit per tonne remained unchanged, and a break below will lead to a further drop to 2,288 ringgit, said Reuters market analyst Wang Tao.

Palm oil prices need to trade at the 2,200 ringgit level for the next 4-6 weeks to attract demand that could reduce and clear stocks, said top industry analyst Dorab Mistry at the Indonesian Palm Oil Association conference on Friday.

Leading analyst James Fry of LMC International raised issues such as uncertainty ahead of Chinese and possibly Indian import rules, although Thomas Mielke of Oil World provided a more upbeat forecast for palm oil prices.

Analysts and traders surveyed by Reuters at the conference saw 2013 average palm oil prices at 2,500 ringgit, down 17.1 percent from 3,016 ringgit calculated so far for this year.

 

In related markets, Brent crude slipped towards $110 a barrel on Friday as critical U.S. budget talks to avert a looming fiscal disaster appeared to have stalled, denting the outlook for oil demand from the world's biggest consumer.

In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 lost 0.1 percent in early Asian trade. The most-active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange edged up 0.2 percent.

RTRS- Analysts call the palm oil market for 2013

NUSA DUA, Indonesia Nov 30 (Reuters) - Following are comments by key analysts at a palm oil industry conference in the Indonesian island of Bali:

THOMAS MIELKE, EDITOR, OIL WORLD

PALM OIL'S DISCOUNT TO SOYOIL

"Palm oil prices are undervalued, I consider the huge discount of $350 to soyoil as not sustainable. It is a matter of time with current surplus in palm oil getting disposed."

SOUTH AMERICAN CROPS

"South American crops are going to be key for prices. September to February 2012/13, global crushing of ten oilseed varieties forecast to suffer an unprecedented drop of 5 million tonnes."

"In contrast, crushing jumped8.4 million tonnes a year ago and 5.8 million tonnes per annum on the average of the past 14 years. The world needs more palm oil to offset these reductions."

"Soybean crushing could be compensated by higher palm oil supplies."

"September/February 2012/13 world soybean supplies down 24 million tonnes. Little rationing in world soybean consumption so far."

RTRS- CIMB upgrades S'pore-listed palm oil firms

CIMB Research upgraded Singapore-listed palm oil plantation firms to 'overweight' from 'trading buy' but downgraded Indonesia-listed peers to 'neutral' from 'overweight'.

Singapore-listed companies will be "less impacted by the minimum wage increase (in Indonesia) due to their geographically-diversified estates, as well as have better prospects in light of their exposure to the domestic cooking oil sector", CIMB said.

It lowered its average crude palm oil price forecasts by 7-9 percent for 2012-2014 to reflect waning risks from El Nino.

The brokerage upgraded Singapore's Wilmar International Ltd WLIL.SI to 'outperform' from 'neutral', and raised its target price to S$3.90 from S$3.52, citing a recovery in earnings due to better crushing margins and higher sales volumes in 2013.

By 0147 GMT, Wilmar shares were up 0.6 percent at S$3.21, but are the biggest underperformer in the sector, falling 36 percent so far this year against the Straits Times Index's .FTSTI 16 percent gain.

Golden Agri-Resources Ltd GAGR.SI was also upgraded to 'outperform' from 'trading buy', as CIMB expects its shares to ride on the recovery in crude palm oil prices in the first half of the year.

CIMB downgraded Indonesia's Astra Agro Lestari AALI.JK to 'neutral' from outperform and cut target price to 23,300 rupiah from 27,400 rupiah, due to rising cost pressures.

Trader's Highlight

DJI- NEW YORK, Nov 28 (Reuters) - U.S. stocks rallied on Wednesday after comments from House Speaker John Boehner, the top Republican in Congress, on a possible compromise to avoid the "fiscal cliff" turned the market around.

The S&P 500 rebounded from a 1 percent decline, gaining more than 20 points from its low after Boehner, an Ohio Republican, said he was optimistic that a budget deal to avoid big spending cuts and tax hikes can be worked out. President Barack Obama added to the good feelings, saying he hoped to get a deal done in the next four weeks.

 

"The fiscal cliff is dominating the discussion, and short term, we’re a little bit too optimistic on it being fixed right away," said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York.

In expectation of higher dividend tax rates in 2013, companies have been shifting dividends or announcing special payouts to shareholders.

 

The market's move marked the second straight day where a leading legislator dictated trading action. On Tuesday, stocks fell on pessimistic remarks from Senate Majority Leader Harry Reid, a Democrat from Nevada.

The market has been swinging for weeks now on headlines from Washington, with Wednesday's gyrations once again highlighting the importance that Wall Street is giving to finding a solution to avoid the series of tax increases and spending cuts that could push the U.S. economy into recession.

The Dow Jones industrial average .DJI rose 106.98 points, or 0.83 percent, to 12,985.11 at the close. The S&P 500 .SPX gained 10.99 points, or 0.79 percent, to 1,409.93. The Nasdaq Composite .IXIC added 23.99 points, or 0.81 percent, to close at 2,991.78.

The S&P 500 bounced off a strong support area near 1,385 that includes both its 200- and 14-day moving averages. It closed above 1,400 for the third session in four - an optimistic sign for stock bulls.

The S&P retail index .SPXRT gained 1.4 percent.

 

Nearly 6.1 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.

On the NYSE, roughly seven stocks rose for every three that fell, and on Nasdaq, five issues rose for every three that fell.

NYMEX- NEW YORK, Nov 28 (Reuters) - U.S. crude futures fell a third straight session on Wednesday as concerns about fuel demand outweighed optimism about a potential deal to resolve the U.S. budget crisis.

U.S. January crude CLc1 fell 69 cents, or 0.79 percent, to settle at $86.49 a barrel, having traded from $85.36 to $87.34.

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell 0.2 percent, stalling a three-day rally as traders booked profits after the spot January contract reached a 2-1/2 week high.

* USDA confirmed sales of 290,000 tonnes of U.S. soybeans to China for delivery in 2012/13.

 

• Concerns about excessive rains delaying soybean planting in Argentina underpinned the market. John Dee, meteorologist for Global Weather Monitoring, said rain was likely Thursday and Friday and again through much of next week.

• Crop weather in Brazil was mostly satisfactory, but some southern areas could use more rain, Dee said.

• Logistical jams and transportation delays anticipated in Brazil early next year will likely slow the flow of a record soybean crop to buyers around the world who are counting on South America to fill the gap left by drought in the United States.

• Rabobank said in an annual outlook that it expected CBOT soybean prices to average $14.75 a bushel in the first quarter of calendar year 2013 before sliding almost 12 percent to $13 in the fourth quarter.

 

• Cash basis offers for soymeal softened at a few locations in the interior U.S. Midwest as recent gains in CBOT futures chilled demand from livestock and poultry producers.

 

• Trade expects USDA's weekly export sales report on Thursday to show sales of U.S. soybeans at 500,000 to 750,000 tonnes, soymeal sales at 150,000 to 250,000 and soyoil sales at 100,000 to 200,000 tonnes.

• January soybeans SF3 face technical resistance at their 200-day moving average of $14.59. The contract's nine-day relative strength index stood at 51 after the close, in neutral technical territory.

FCPO- SINGAPORE, Nov 28 (Reuters) - Malaysian palm oil futures eased on Wednesday, dropping for a second straight session on concerns that U.S. fiscal woes could hamper global economic growth and commodity demand.

Prices touched their highest in almost a week on Tuesday as a Greek debt deal provided brief comfort for investors, but lack of progress in U.S. budget talks and speculation that Malaysian palm oil inventories could hit a record high this month kept prices in a tight range.

"The market looks like it's expected to just stay rangebound this week," said a Singapore-based trader with a global commodities trading house. "But for the longer term, sentiment has improved, compared to a month ago."

The benchmark February contract FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.7 percent to close at 2,394 ringgit ($784) per tonne. Prices traded in a range of 2,383 to 2,417 ringgit.

Total traded volumes stood at 31,818 lots of 25 tonnes each, higher than the usual 25,000 lots.

Technicals showed mixed signals for palm oil, but it is biased to drop to 2,353 ringgit per tonne, said Reuters market analyst Wang Tao.

Malaysian palm oil stocks hit a record high in October at 2.51 million tonnes on seasonally high production. While some traders said slower output this month may ease pressure on the stockbuild, concerns remained that export demand might not be enough to reduce stocks.

Cargo surveyors showed a slight drop in shipments in the first 25 days of November from a month ago.

The European Commission has made public a decision taken last week to allow palm oil producers under the Roundtable on Sustainable Palm Oil scheme to qualify for biofuel subsidies, a move that could spur more European demand for the tropical oil.

In other markets, Brent oil slipped on Wednesday as investors nervously eyed talks to head off a looming fiscal disaster in the United States, the world's top oil consumer.

The U.S. budget woes also weighed on other vegetable oil markets. U.S. soyoil for December delivery BOZ2 fell 0.7 percent in early trade. The most-active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.4 percent lower.

The market also took note of Olam International's OLAM.SI detailed defence on Wednesday against short-seller Muddy Waters' attacks on its accounting practices and acquisitions, emphasising it was not at risk of insolvency.

Shares of the Singapore commodities firm tumbled as much as 6 percent to a three-and-a-half year low, but later recouped some losses.

REGIONAL EQUITY- BANGKOK, Nov 28 (Reuters) - The Philippine index closed at a record high on Wednesday amid good buying interest in large caps, following stronger-than-expected third-quarter GDP growth, while Indonesia fell for a second session as market players cashed in on recent gainers.

In Manila, the index .PSI rose 0.9 percent to 5,633.72, scaling a record for the fourth session. The Philippine economy grew a faster-than-expected 7.1 percent in the September quarter, reflecting strong domestic demand and government spending.

"The Philippines is having a fantastic year despite strong global headwinds. Most nations in Asia saw a tough third quarter while the Philippines had the fastest GDP expansion since 2010," HSBC said in a report.

"This is largely due to the fact that policy makers took timely measures to counterbalance an anticipated slowdown of demand from China and the Eurozone as well as the resilient nature of the services-oriented economy," it said

In a choppy session, Jakarta's Composite Index .JKSE ended down 0.8 percent at its lowest close in more than three weeks, led by a 5 percent fall in PT Astra International Tbk ASII.JK.

Astra shares, a proxy of Indonesia's consumer sector, had gained almost 2 percent last week versus a 0.05 percent loss of the broader market.

RTRS - Malaysia to detail crude palm oil tax cut in Dec

NUSA DUA, Indonesia, Nov 29 (Reuters) - Malaysia, the world's second largest palm oil producer, will announce details of its proposed cut to crude palm oil export taxes by the end of December, a government official said on Thursday.

"We will make an announcement on the exact pricing in the last few days of December," said the official who declined to be named due to sensitivity of the issue.

The tax, due to take effect on Jan. 1, is aimed at making crude exports more competitive in the face of a tax cut for refined grades by top producer Indonesia last year.

The Malaysian government has proposed pegging the tax at between 4.5 and 8.5 percent depending on the market prices, a cut from the current 23 percent. 

RTRS - Indonesia 2013 palm output set to rise 7 pct

NUSA DUA, Indonesia, Nov 29 (Reuters) - Palm oil output in the world's biggest producer Indonesia is expected to climb 7 percent next year to 27 million tonnes, a top industry association official said on Thursday, as three years of acreage expansion efforts bear fruit.

Output of the edible oil is also forecast to end 2012 at 25.2 million tonnes, up from 23.5 million tonnes in 2011, Fadhil Hasan, executive director at the Indonesian Palm Oil Association (GAPKI), told Reuters.

"If 2013 is going to be like 2012 in terms of weather and climate, and there are no shocks in the supply, maybe output will be about 27 million tonnes," said Hasan, speaking on the sidelines at the 8th Annual Indonesian Palm Oil Conference on the island of Bali.

"A lot of expansion has happened in the last three years or so, so now the trees are mature."

Palm estates sprawl across 8.2 million hectares in Indonesia, and that number is expected to rise by about 200,000 hectares a year for the next decade.

DEMAND WOES

Palm oil is used mainly as an ingredient in food such as biscuits and ice cream, or as a biofuel. Indonesia and Malaysia account for about 90 percent of global production.

Demand for the edible oil has fallen this year due to the global economic slowdown, which has led to record-high inventories. Benchmark palm oil futures have also lost a quarter of their value so far this year. 

Indonesian palm oil stocks are currently between 2.5 million and 2.8 million tonnes, said Hasan. "We used to have one month of production as stock but maybe more than that now," he added

Palm producers are seeking new ways to generate demand, but their efforts may be hampered by renewed attacks by Western governments on the oil's green credentials.

Environmental groups have been critical of the expansion in the palm sector, which they blame for deforestation, speeding up climate change, ruining watersheds and destroying wildlife.

"The perception, especially from European countries, towards palm oil is worse than two or three years because of the intensity and scale of campaigns by NGOs," Hasan said.

The U.S. Environmental Protection Agency recently visited Indonesia to review the environmental aspects of its palm oil industry, while France has proposed a hike in duties on foods using palm oil, which has been dubbed the "Nutella tax".

To improve its green credentials, Indonesia signed a two-year forest moratorium in May last year, although critics say breaches still occur.

Hasan urged the government not to extend the ban, which is due to end in 2013, saying it would damage the economy. The palm oil industry is one of the biggest in Indonesia.

"We don't know exactly what is going to happen, but in the interests of the Indonesian economy we hope that the moratorium is not going to be extended," Hasan said.

Trader's highlight

DJI - NEW YORK, Nov 28 (Reuters) - U.S. stocks rallied on Wednesday after comments from House Speaker John Boehner, the top Republican in Congress, on a possible compromise to avoid the "fiscal cliff" turned the market around.

The S&P 500 rebounded from a 1 percent decline, gaining more than 20 points from its low after Boehner, an Ohio Republican, said he was optimistic that a budget deal to avoid big spending cuts and tax hikes can be worked out. President Barack Obama added to the good feelings, saying he hoped to get a deal done in the next four weeks.

"The fiscal cliff is dominating the discussion, and short term, we’re a little bit too optimistic on it being fixed right away," said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York.

The market has been swinging for weeks now on headlines from Washington, with Wednesday's gyrations once again highlighting the importance that Wall Street is giving to finding a solution to avoid the series of tax increases and spending cuts that could push the U.S. economy into recession.

The Dow Jones industrial average rose 106.98 points, or 0.83 percent, to 12,985.11 at the close. The S&P 500 gained 10.99 points, or 0.79 percent, to 1,409.93. The Nasdaq Composite added 23.99 points, or 0.81 percent, to close at 2,991.78.

The S&P 500 bounced off a strong support area near 1,385 that includes both its 200- and 14-day moving averages. It closed above 1,400 for the third session in four - an optimistic sign for stock bulls.

NYMEX Crude Oil- NEW YORK, Nov 28 (Reuters) - U.S. crude futures fell a third straight session on Wednesday as concerns about fuel demand outweighed optimism about a potential deal to resolve the U.S. budget crisis.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell 0.2 percent,stalling a three-day rally as traders booked profits after the spot January contract reached a 2-1/2 week high.

* USDA confirmed sales of 290,000 tonnes of U.S. soybeans to China for delivery    in 2012/13. 

·   Concerns about excessive rains delaying soybean planting in Argentina underpinned the market. John Dee, meteorologist for Global Weather Monitoring, said rain was likely Thursday and Friday and again through much of next week.

·      Crop weather in Brazil was mostly satisfactory, but some  southern areas could use more rain, Dee said.

·           Logistical jams and transportation delays anticipated in Brazil early next year will likely slow the flow of a record soybean crop to buyers around the world who are counting on  South America to fill the gap left by drought in the United States.

·          Rabobank said in an annual outlook that it expected CBOT soybean prices to average $14.75 a bushel in the first quarter of calendar year 2013 before sliding almost 12 percent to $13 in the fourth quarter.

·          Cash basis offers for soymeal softened at a few locationsn in the interior U.S. Midwest as recent gains in CBOT futures chilled demand from livestock and poultry producers.

·          Trade expects USDA's weekly export sales report on Thursday to show sales of U.S. soybeans at 500,000 to 750,000 tonnes, soymeal sales at 150,000 to 250,000 and soyoil sales at 100,000 to 200,000 tonnes.

·          January soybeans face technical resistance at their 200-day moving average of $14.59. The contract's nine-day relative strength index stood at 51 after the close, in neutral technical territory.

FCPO - SINGAPORE, Nov 28 (Reuters) - Malaysian palm oil futures eased on Wednesday, dropping for a second straight session on concerns that U.S. fiscal woes could hamper global economic growth and commodity demand.

Prices touched their highest in almost a week on Tuesday as a Greek debt deal provided brief comfort for investors, but lack of progress in U.S. budget talks and speculation that Malaysian palm oil inventories could hit a record high this month kept prices in a tight range.

"The market looks like it's expected to just stay rangebound this week," said a Singapore-based trader with a global commodities trading house. "But for the longer term, sentiment has improved, compared to a month ago."

The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 0.7 percent to close at 2,394 ringgit ($784) per tonne. Prices traded in a range of 2,383 to 2,417 ringgit. Total traded volumes stood at 31,818 lots of 25 tonnes each, higher than the usual 25,000 lots.

The European Commission has made public a decision taken last week to allow palm oil producers under the Roundtable on Sustainable Palm Oil scheme to qualify for biofuel subsidies, a move that could spur more European demand for the tropical oil.

The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.4 percent lower.

Regional Equities - BANGKOK, Nov 28 (Reuters) - The Philippine index closed at a record high on Wednesday amid good buying interest in large caps, following stronger-than-expected third-quarter GDP growth, while Indonesia fell for a second session as market players cashed in on recent gainers.

In Manila, the index rose 0.9 percent to 5,633.72, scaling a record for the fourth session. The Philippine economy grew a faster-than-expected 7.1 percent in the September quarter, reflecting strong domestic demand and government spending.

"The Philippines is having a fantastic year despite strong global headwinds. Most nations in Asia saw a tough third quarter while the Philippines had the fastest GDP expansion since 2010," HSBC said in a report.

"This is largely due to the fact that policy makers took timely measures to counterbalance an anticipated slowdown of demand from China and the Eurozone as well as the resilient nature of the services-oriented economy," it said

In a choppy session, Jakarta's Composite Index ended down 0.8 percent at its lowest close in more than three weeks, led by a 5 percent fall in PT Astra International Tbk 

 

RTRS - EU Commission backs controversial sustainable palm oil scheme

BRUSSELS, Nov 27 (Reuters) - The European Commission has approved a scheme that would certify as sustainable transport fuel made from palm oil, condemned by environmental groups as one of the most damaging sources of biodiesel.

The Commission made public on Tuesday a decision taken last week to endorse the Roundtable on Sustainable Palm Oil scheme, which means the palm oil producers it licenses can qualify for subsidies.

"Palm oil is driving deforestation, wildlife loss, community conflicts, and accelerating climate change. Instead of greenwashing palm oil, the EU should outright ban its use as a biofuel," said Robbie Blake, biofuels campaigner at Friends of the Earth Europe.

Concern that some biofuels create more problems than they solve led to a major policy shift in September when the EU executive announced a proposal to limit how much biodiesel and bioethanol could be made from food crops.

Last month, it announced new rules to encourage a shift away from first-generation biofuels, blamed for stoking food price inflation, forcing forest clearance and draining of peat land. The aim is to move towards a second generation of fuels made from waste or algae, for instance.

The Commission's own research has shown palm oil has the highest emissions of any biofuel when so-called ILUC factors - the indirect land use change caused by using it for fuel - are considered.

"Emissions from peat conversion have a larger impact on the overall emissions attributed to oil crops, particularly for palm oil, than for bioethanol crops," a Commission document released in October said.

The roundtable is an association of hundreds of palm oil growers, processors, traders and distributors, as well as some non-governmental organisations working in palm-oil producing nations, such as Indonesia and Malaysia.

Commission spokeswoman Marlene Holzner said the Roundtable on Sustainable Palm Oil scheme had been judged "suitable."

She added that the EU's Renewable Energy Directive already prohibits the destruction of forests to grow palm oil or other biofuel crops.

RTRS - Soybeans undervalued, not reflecting high crop risk- Oil World

HAMBURG, Nov 27 (Reuters) - Soybean prices are too low and do not reflect the possible risk to tight global supplies if the critical South American soybean harvest in early 2013 suffers weather damage, Hamburg-based oilseeds analysts Oil World said on Tuesday.

“In our opinion the prices of soybeans and other oilseeds are currently undervalued considering the production risks in South America and the unusually small world stocks available at the beginning of 2013,” Oil World said.

“Soybean stocks will be depleted to a multi-year low of 49 million tonnes at the beginning of 2013 when the South American crop starts moving. They are down 21 million tonnes from a year ago and leave hardly any cushion for crop damage.”

Soybean prices hit record highs in September as drought ravaged the U.S. crop, but fell back to pre-drought levels in mid-November as the U.S. harvest turned out larger than expected and looming big South American crops may relieve world supplies in early 2013. 

Unfavourable sowing weather in key exporters Argentina and Brazil led Oil World to cut its forecasts of 2013 soybean harvests in both countries but a large increase is still expected on the year. (Full Story)

Low stocks and short U.S, supplies will mean the world will urgently need big South American soybean exports in early 2013, it said.

“At the moment the market is optimistic in its estimates of soybean yields and production in South America,” Oil World said. “But the biggest problems are to be seen in the possibly too low pace of soybean disposals caused by the bottlenecks in the domestic transport and export facilities in Brazil and Argentina.”

As the United States is forecast to export over 80 percent of its available soybean export supplies by February 2013 and with soybean stocks sharply reduced, the monthly volumes to be shipped out of South America will have to be record volumes from March 2013, it said.

Brazil’s soybean stocks on Jan. 1, 2013, as its new harvest starts will have fallen to 1.0 million tonnes from 5.4 million tonnes in January 2012, Oil World estimates.

Argentina’s soybean stocks on Mar. 1, 2013, as its later harvest approaches will fall 2.3 million tonnes from 3.6 million tonnes a year previously, it forecast.

RTRS - Argentine soy prices get boost from CBOT gains

BUENOS AIRES, Nov 27 (Reuters) - Argentina's closing soy prices and trends on Tuesday:

• Soy prices in the main grains port of Rosario rose to between 1,910 pesos and 1,950 pesos ($396/$404) per tonne, mirroring gains in the benchmark Chicago futures market, traders said. Trade was scant because supplies are low.

• Prices closed at 1,900 pesos per tonne in the previous session.

• Chicago Board of Trade soybean futures rose 1.7 percent on Tuesday, their biggest daily gain in a month, on technical buying and fears that South American production might fall short of initial expectations, traders said.

• Rains that swept through Argentina last week replenished moisture levels for young corn and soy plants in the main crop belt, but other areas remain under water despite some drier weather, a meteorologist said on Tuesday.

• In Rosario, soy for delivery in May 2013, which is quoted in U.S. dollars, closed up $5 to end at $315 per tonne.

• In the port of Quequen, soy traded at 1,700 pesos per tonne.

Trader's highlight

DJI - NEW YORK, Nov 27 (Reuters) - U.S. stocks slid on Tuesday in a choppy session, losing ground in the last hour before the close after Senate Majority Leader Harry Reid expressed disappointment that there has been "little progress" in dealing with the "fiscal cliff."

The market was flat for most of the session but fell sharply after Reid's comments, a signal that investors remain skittish about the wrangling in Washington. The CBOE Volatility Index, or VIX, rose on Reid's words. 

Higher dividend and capital gains taxes are part of the negotiations in Washington and may rise even if a deal is crafted.

The S&P 500's modest losses on Tuesday marked its worst day in eight sessions - indicating traders are unwilling to sell aggressively as a deal probably would trigger a rally. The benchmark S&P 500 once again closed below 1,400, a key psychological level that it had reclaimed last week as it rose nearly 4 percent.

The Dow Jones industrial average fell 89.24 points, or 0.69 percent, to 12,878.13 at the close. The S&P 500 dropped 7.35 points, or 0.52 percent, to finish at 1,398.94. The Nasdaq Composite lost 8.99 points, or 0.30 percent, to end at 2,967.79.

NYMEX - NEW YORK, Nov 27 (Reuters) - U.S. crude oil futures fell 56 cents to $87.18 a barrel on Tuesday on concerns about the progress of key U.S. budget talks.

CBOT Soybean - Chicago Board of Trade soybean futures rose 1.7 percent, their biggest daily gain in a month, on technical buying and fears that South American production might fall short of initial expectations, traders said.

·     Strength in soyoil lends support. Most-active CBOT January soyoil hit a three-week high on recent export demand for  U.S. soyoil and short-covering by funds, who hold a massive netshort position in the commodity.

·    Some traders cited support from talk that China might step  up soybean purchases in the coming weeks.  

·     Basis bids for soybeans shipped by barge to the U.S. Gulf Coast were steady to higher, supported by good demand from  exporters and concerns that low water on the Mississippi River  would restrict shipping in the coming weeks, traders said.

·    Market lifted by concerns about threats to South American soy prospects. Excessive rain in Argentina is delaying planting of corn and soybeans, and although crop weather in Brazil is mostly satisfactory, traders are monitoring pockets of dryness in the south.    

·      Soybean prices are too low and do not reflect the possible  risk to tight global supplies if the critical South American soybean harvest in early 2013 suffers weather damage - oilseeds analysts Oil World.

·      South Korea's Major Feedmill Group bought 110,000 tonnes  of soymeal likely to be sourced from South America in a tender for up to 165,000 tonnes, European traders said.

FCPO - SINGAPORE, Nov 27 (Reuters) - Malaysian palm oil futures edged down on Tuesday, as traders booked profits from a near one-week high after Greece's international lenders agreed on a financial aid deal that boosted market optimism.

On the domestic front, investors are watching Malaysian palm oil output to gauge whether stocks will reach another record high, especially after the latest cargo surveyor data pointed to weaker export demand.

"Demand is tepid, with rumours that India may import on domestic shortfall. Speculators are also seen pushing up futures amid optimism that output in the fourth quarter will avert the looming 'supply cliff'," said a trader with a local commodities brokerage in Malaysia.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 0.9 percent to close at 2,410 ringgit ($792) per tonne, but off the day's high of 2,458 ringgit, a level last seen on Nov. 21.

Total traded volumes stood at 35,938 lots of 25 tonnes each, higher than the usual 25,000 lots.

The market, however, expects weaker palm oil prices to stimulate demand for price-sensitive markets such as India and Pakistan in the next few weeks. 

Palm oil stocks in China could hit one million tonnes by year-end, up from 790,000 tonnes last week, fed by surging imports and stagnant domestic demand, the China National Grain and Oils Information Centre said on its website 

Regional Equities - BANGKOK, Nov 27 (Reuters) - Philippine shares posted small gains to hit a record close for the third session on Tuesday, while Singapore and Thailand edged slightly higher amid good buying interest in large cap telecoms and banks seen as market laggards.

The Philippine index finished at 5,586.45, topping Monday's all-time closing high of 5,579.42. Singapore's Straits Times Index and Thai SET index both rose to a near three-week high, up 0.3 percent and 0.5 percent, respectively.

Among weak spots, Malaysia fell for a fifth session, ending down 0.6 percent at a five-month low, while Indonesia lost 0.9 percent after Monday's 0.6 percent gain that sent the index to a record finish of 4,375.17.

RTRS - Monthly palm oil exports from Indonesia gain 3 pct m/m in Oct

JAKARTA, Nov 26 (Reuters) - Palm oil exports from Indonesia, the world's top producer, rose 3 percent to 1.424 million tonnes in October compared to the previous month, industry data showed on Monday.

This year, palm oil output in the archipelago is expected to be between 23 million and 25 million tonnes, with around 18 million tonnes exported.

Indonesia's top customers for the edible oil include India, China and Europe.

In January-October, exports to India totalled 4.648 million tonnes, China 2.400 million tonnes and the European Union 3.217 million tonnes.

Trader's highlight

DJI - NEW YORK, Nov 26 (Reuters) - Wall Street slipped on Monday, pulling back from last week's gains, as retailers fell on concerns about heavy discounts at the start of the U.S. holiday shopping season and the overhang of the "fiscal cliff" kept investors wary of making big bets.

The White House threw cold water on a proposal of avoiding the looming "fiscal cliff" of spending cuts and tax highs by limiting tax deductions and loopholes, instead of allowing tax rates to rise for the richest Americans.

In the other major worry for the market, euro zone finance ministers and the International Monetary Fund made their third attempt in as many weeks to agree on releasing emergency aid for Greece, with policymakers saying a write-down of Greek debt is off the table for now.

NYMEX - NEW YORK, Nov 26 (Reuters) - U.S. crude oil futures fell 54 cents to settle at $87.74 a barrel on Monday, pressured by concerns about Greek debt talks and U.S. budget negotiations.

CBOT Soybean - Soybean futures on the Chicago Board of Trade rose for a second straight session, with front-month January reaching a two-week high on concerns about South American crop weather and fresh sales of U.S. soyoil, traders said.

·         Soybean market pared gains after USDA reported export inspections of U.S. soybeans in the latest week at 45.498 million bushels, below trade estimates for 60 million to 64 million.

·         Concern about surplus moisture in crop areas of central Argentina lent support. The region was dry over the weekend but has struggled to dry out after rains last week, and another storm system is expected late on Wednesday into Friday.

·         Rains should return to Brazil's main center-west soy belt this week, local meteorologist Somar said, but dry pockets in the southern states of Parana and Rio Grande do Sul will likely leave the No. 2 and No. 3 soybean-producing states drier than normal in November.

·         Soybean planting progress in Brazil rose 10 percentage points to 74 percent of the expected total last week. But planting is still behind the 80 percent sowed by this time last year - analyst Celeres.

·         Forward sales of the Brazilian 2012/13 soybean crop by farmers reached 50 percent last week, up from 49 percent a week earlier and up from the five-year average of 27 percent - Celeres.

·         Worries about likely shipping problems due to low water on the Mississippi River have created a two-tiered cash market for soybeans at the U.S. Gulf, with strong demand for supplies sourced down river from Cairo, Illinois. Buyers were bidding a 5- to 7-cent premium for southern beans.  

FCPO - KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm oil futures edged up on Monday on expectations stocks might grow at a slower pace, with the market also focusing on Greek financial aid deal set to be signed later in the day that may cheer markets.

Cargo surveyor data showed Malaysian exports declined at a much slower pace, easing pressure on stockbuild and supporting palm oil prices that have fallen 23 percent so far this year on roiling financial markets.

"If exports maintain their two percent drop for the full month, it means that although inventory levels are poised to go higher, it may be growing at a slower rate than expected," said Kenanga Investment Bank analyst Alan Lim.

Cargo surveyor Intertek Testing Services said palm oil exports in Nov. 1-25 fell 1.8 percent to 1,276,792 tonnes from a month ago, showing slight improvement from a 3.3 percent drop in the first twenty days of this month. Another cargo surveyor, Societe Generale de Surveillance, reported a similar 1.9 percent drop for the same period.

The market expects weaker palm oil prices in October and November to stimulate demand from price-sensitive countries such as India and Pakistan, translating to higher exports in the weeks to come.

Financial markets across the world were generally optimistic about a euro zone finance ministers meeting on Monday which is pushing for international lenders to release emergency aid and stem the region's debt crisis. 

Regional Equities - BANGKOK, Nov 26 (Reuters) - The Philippine index hit a record close for the second straight session while Indonesian stocks ended at an all-time high on Monday, led by large caps, but trading volume was relatively moderate as investors awaited an aid deal for Greece.

The Philippine index closed at 5,579.42, above its record finish of 5,552.34 on Friday with shares in Philippine Long Distance Telephone Co (PLDT) among those actively traded, were up 0.4 percent.

Jakarta's Composite Index produced a fourth straight gain to closed at 4,375.17. Shares in PT Astra International Tbk a leading motorcycle dealer and a proxy of Indonesia's consumer sector, gained 1.3 percent.

Bucking the trend, Malaysia fell for a fourth session, ending down 0.4 percent at 1,607.88, its lowest close since June 18, with telecoms shares among decliners. The Malaysian bourse said foreign investors sold shares worth 137.5 million ringgit ($44.95 million).

RTRS- Indonesia keeps Dec crude palm oil, cocoa export taxes unchanged

JAKARTA, Nov 26 (Reuters) - Indonesia, the world's top palm oil producer, will keep its export tax for crude palm oil unchanged at 9 percent for December, and leave its tax on cocoa bean exports unchanged at 5 percent, a trade ministry official said on Monday.

The government will also keep the export tax for RBD palm olein unchanged at 3 percent for December.

RTRS- HSBC China flash PMI at 13-month high as growth quickens

BEIJING, Nov 22 (Reuters) - China's vast manufacturing sector saw expansion accelerate in November for the first time in 13 months, preliminary results from a factory survey showed, a sign that the pace of economic growth has revived after seven consecutive quarters of slowdown.

The China HSBC Flash Manufacturing Purchasing Managers Index (PMI) rose to a 13-month high of 50.4 in November, the latest indicator of recovery in the real economy after data showing solid credit growth, firmer exports and rising industrial output in the previous month.

A sub-index measuring output rose to 51.3, also the highest since October 2011.

"This reflects that conditions for smaller firms, especially exporters, are looking up," said Li Wei, a Shanghai-based economist for Standard Chartered. "The consensus in the market is already for a small, gradual improvement."

An uptick in key economic activity indicators in October, following encouraging signs in September, cemented the view of many analysts and investors that a rebound in the world's second largest economy gathered momentum as it entered the fourth quarter, thanks to a raft of pro-growth policies rolled out by the government over recent months.

China is currently shuffling its senior officials after the seven top leaders of the ruling Communist Party were selected at a congress last week. The new appointments should end months of uncertainty in the highest ranks, although economic policy is not expected to change abruptly in the near-term.

Even before the congress, the central bank had moved to ease liquidity by pumping short-term cash into money markets rather than resorting to the interest rate cuts or reduction in banks' required reserve ratios that many investors had expected.

STEADY THROUGH YEAR-END

This month's PMI reading above 50 is likely to be seen as a turning point by the market, particularly if it is born out by the final reading due on Dec. 1 and by official indicators.

Asian shares .MIAPJ0000PUS extended gains slightly after the data to stand up nearly 1 percent on the day and the Australian dollar AUD=D4, sensitive to demand from the biggest customer for Australia's resources, rose as far as $1.04.

"This confirms that the economic recovery continues to gain momentum towards the year-end," Qu Hongbin, chief China economist at index sponsor HSBC, said in a statement accompanying the data.

"However, it is still the early stage of recovery and global economic growth remains fragile. This calls for a continuation of policy easing to strengthen the recovery."

With a one-month exception in October 2011, the HSBC PMI -- which largely reflects the private manufacturing sector -- has remained stubbornly below the 50-point level separating accelerating from slowing growth since June 2011.

Unlike the patchy results seen in previous months, in November almost all the sub-indices in the HSBC survey concurred in showing an improving economy.

The one exception was a fall in the sub-index measuring output prices, demonstrating that manufacturers are still struggling with overcapacity and relatively weak domestic demand.

That could also reflect the weight in the survey of exporting firms, which have less ability to raise sales prices, said Standard Chartered's Li.

Indeed, China's exporters are increasingly squeezed by rising domestic costs and competition from new international suppliers, Zhou Haijiang, head of Chinese textile exporter Hodo Group, told reporters this month.

"Not only Western countries manufacture industrial goods, but also a lot of developing countries including former socialist countries who now have market economies are all exporting, thus creating a global surplus that cannot be changed," Zhou said.

"Because of this it is hard to raise sales prices, everyone is selling and it is hard for manufactured goods prices to rise. In some cases prices have even fallen."

Analysts expect no further cuts to interest rates this year or next after back-to-back cuts in June and July, and only one more 50 basis point cut to banks' required reserve ratios (RRR) in 2012 after three since late 2011 that have freed an estimated 1.2 trillion yuan for new lending.

Chinese banks are on course to make new loans worth more than 8.5 trillion yuan ($1.4 trillion) in 2012, expansionary versus the 7.5 trillion of new loans extended in 2011 and above the 8 trillion yuan that sources told Reuters back in February was the target for 2012.

Total social financing aggregate, a broad measure of liquidity in the economy, weakened to 1.29 trillion yuan in October, down from 1.65 trillion yuan in September, but still remained on track to hit a record 14 trillion yuan this year.

China also opened many previously-closed sectors to private investment with a view to funding new infrastructure projects and supporting economic growth without piling on more debt that local governments can ill-afford.

Although analysts expect fourth quarter GDP growth to outpace the 7.4 percent seen in the third quarter, full-year expansion for 2012 is expected to be the slowest in 13 years.

Trader's Highlight

DJI- NEW YORK, Nov 23 (Reuters) - U.S. stocks rose for a fifth day during a holiday-shortened, thinly traded session on Friday as investors picked up recently beaten-down shares of large technology companies.

Market participants were also encouraged by signs of progress in talks about releasing aid to debt-saddled Greece and piled into U.S. retail shares as Black Friday got the holiday shopping season under way.

U.S. stock market trading ended early and was closed on Thursday for the Thanksgiving holiday.

Volume was the lightest of the year, though the session was abbreviated. Shares of big-cap technology companies climbed as investors took advantage of the day's upward momentum to add to positions, helping the S&P 500 rack up its second best week of 2012.

"Anyone that was on the sidelines waiting for a pullback like the one we just had in some of the tech names, they're looking for any glimpse of strong price action for 'permission' to enter into those (stocks)," said Todd Salamone, director of research at Schaeffer's Investment Research in Cincinnati, Ohio

Microsoft MSFT.O helped lift the Nasdaq, gaining 2.8 percent to $27.70, while Apple Inc AAPL.O rose 1.7 percent to $571.50.

From mid-September to mid-November, the S&P tech sector .GSPT shed about 13 percent as the broader market also dropped.

Research in Motion RIMM.O surged on optimism about its soon-to-be-launched BlackBerry 10 devices that will vie against Apple's AAPL.O iPhone and Android-based smartphones. RIM was up 13.6 percent at $11.66.

Greece said the International Monetary Fund had relaxed its debt-cutting target for the country, suggesting lenders were closer to a deal for a vital aid tranche to be paid. But other sources involved in the talks cautioned the funding gap was far bigger than Greece has suggested.

 

Euro zone finance ministers, the IMF and European Central Bank (ECB) failed earlier this week to agree on how to shrivel the country's debt to a sustainable level and will have a third attempt at resolving the issue on Monday.

The Dow Jones industrial average .DJI gained 172.79 points, or 1.35 percent, to 13,009.68. The Standard & Poor's 500 Index .SPX rose 18.12 points, or 1.30 percent, to 1,409.15. The Nasdaq Composite Index .IXIC climbed 40.30 points, or 1.38 percent, to 2,966.85.

The S&P 500 broke a two-week losing streak to rise 3.6 percent. Stocks had tumbled earlier in the month on worries about the impact of tax and spending changes set to take effect from January, but hopes that politicians will reach a deal to avert the so-called fiscal cliff helped the market recoup some of those declines this week.

The Dow and S&P 500 both closed above key technical levels for the first time since Nov 6, which could provide additional support. The Dow ended above 13,000, while the S&P broke above 1,400.

The Dow rose 3.3 percent for the week, while the Nasdaq jumped 4 percent. The Nasdaq had ended lower for the previous six weeks in a row.

Volume was about 2.8 billion shares on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of over 6 billion.

Advancers outnumbered decliners on the NYSE by 2,407 to 469 on the New York Stock Exchange. On the Nasdaq, advancers had the lead, with 1,775 stocks gaining and 548 shares declining.

The retail sector rose as investors looked for signs of how much consumers are spending as stores lured shoppers with Black Friday deals and discounts.

Black Friday, the day after Thanksgiving, kicks off the U.S. Christmas shopping season for retailers and is often the busiest shopping day of the year. The National Retail Federation expects sales during the holiday season to grow 4.1 percent this year compared with last year's 5.6 percent increase.

If the traffic and sales numbers look strong early on, "it usually gives a sense that the season will be in line with expectations," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"The way that could work against a stronger retail season is if there's no follow-through, there could be discounting on the part of retailers."

NYMEX- NEW YORK, Nov 23 (Reuters) - U.S. crude oil futures settled up 90 cents at $88.28 a barrel on Friday, lifted by fresh protests in Egypt and optimism about talks on releasing aid to Greece.

CBOT SOYBEAN-Soybean futures on the Chicago Board of Trade rose in a holiday-shortened session, lifted by a weaker U.S. dollar and bullish economic data in China, the world's top soy buyer, traders said.

* CBOT December options expired at the close.

* Optimism about a deal to help Greece, hopes that U.S. lawmakers can agree on a solution to avoid a fiscal crisis, and data showing an improving global economic outlook have pressured the dollar and driven a rally in riskier asset markets, including commodities, this week.

* For the week, CBOT soybeans Sc1 settled up 2.7 percent, rebounding after three straight weekly losses that drove the market to a five-month low.

• China's manufacturing sector saw expansion accelerate in November for the first time in 13 months, preliminary data showed Thursday, a sign that the pace of economic growth in the world's biggest soy buyer has revived after seven consecutive quarters of slowdown.

• On a bearish note, China's soybean imports will grow at their slowest pace in six years this marketing year as sluggish demand and poor crushing margins dent Chinese purchases, a Reuters poll showed.

• Spot basis bids for soybeans shipped by barge to the U.S. Gulf Coast mostly held steady early Friday amid a lack of selling by farmers, traders said.

• Traders continue to watch the Mississippi River amid concerns that low water levels could slow shipping. The U.S. Coast Guard has said it did not expect a river closure between St. Louis and Cairo, Illinois, but that restrictions on drafts and tow sizes were likely at some point.

• USDA reported export sales of U.S. soybeans in the latest week at 543,600 tonnes, within a range of trade estimates for 400,000 to 650,000 tonnes.

• USDA pegged weekly U.S. soymeal sales at 197,800 tonnes, slightly below a range of trade estimates for 200,000 to 300,000 tonnes.

• USDA reported weekly U.S. soyoil sales at 124,000 tonnes, well above a range of trade estimates for 50,000 to 70,000 tonnes.

• USDA through its daily reporting system on Friday confirmed sales of 20,000 tonnes of U.S. soyoil to unknown destinations for 2012/13 delivery.

• Argentine soy-crushing workers ended a brief strike in three of four soy-processing plants in the Rosario port area on Friday while negotiations with export company Bunge continued, a union official said.

• Brazilian grain industry association Abiove raised its estimate for the already harvested 2011/12 soybean crop to 67.7 million tonnes, from 66.8 million previously, which it said will mean an additional 800,000 tonnes of soybeans for export.

FCPO-SINGAPORE, Nov 23 (Reuters) - Malaysian palm oil futures fell for a fourth straight session on Friday and posted a third weekly loss in four, as investors remained concerned over slowing demand for the edible oil as prospects for global economic growth remained dim.

Investors were also cautious ahead of a European meeting on Monday, when international lenders would gather for a second time to reach a deal to release emergency aid for Greece.

Malaysia, the world's second largest palm oil producer, exported less of the edible oil for the first 20 days of the month compared to October, fuelling concerns over its inventories that have hovered near record high levels.

"The market is still worried about exports, which slowed down due to the slew of holidays last week," said a trader with a foreign commodities brokerage in Malaysia.

"The question everybody is asking now is whether end stocks will be lower or slightly higher. I think it should be going down with lower production."

The benchmark February contract FCPOc3 on the Bursa Malaysia Derivatives Exchange lost 0.7 percent to close at 2,395 ringgit ($783) per tonne.

Total traded volumes stood at 32,946 lots of 25 tonnes each, higher than the usual 25,000 lots.

Technicals showed a bearish target at 2,321 ringgit remains intact for palm oil based on a Fibonacci retracement analysis, said Reuters market analyst Wang Tao.

 

For the week, futures lost 1.4 percent on worries that the U.S. budget crisis, and the euro zone's ongoing financial woes, could weigh on demand.

Malaysian shipments of the tropical oil fell 3.3 percent and 3.8 percent for the Nov. 1-20 period from a month ago, cargo surveyors Intertek Testing Services and Societe Generale de Surveillance said respectively.

Traders are hoping the annual price outlook conference, organised by the Indonesia Palm Oil Association on next Thursday and Friday, would provide more perspective.

In related markets, Brent crude slipped towards $110 a barrel on Friday as weak data from Europe raised concerns about global demand and a ceasefire in the Gaza Strip eased supply concerns, offsetting positive manufacturing data from China.

 

In other vegetable oil markets, the most active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.2 percent higher. The U.S. financial markets were closed for the Thanksgiving holiday.

REGIONAL EQUITY- Nov 23 (Reuters) - Major Southeast Asian stock markets edged up on Friday, with Philippines rising to a record close, helped by optimism over the global economy and progress in Greece aid talks, while solid manufacturing surveys in the United States and China lifted sentiment.

The Philippines .PSI, the region's best performer this year, gained 0.7 percent to a record closing high of 5,552.34, led by banks. The index rose 2.1 percent this week.

Indonesia .JKSE gained 0.3 percent, led by banking shares, to its highest close since Nov. 14 with a foreign inflow of $30 million.

Thailand .SETI edged up 0.2 percent, helped by energy shares, while Singapore .FTSTI gained for a fifth straight session to end 0.1 percent higher.

Bucking the trend, Malaysia .KLSE ended down 0.3 percent, witnessing a net foreign selling of $12.56 million. Vietnam .VNI lost 0.4 percent on bad debt and economic woes.