DJI - NEW YORK, Nov 19 (Reuters) - World
stock markets and commodities surged on Monday, recovering some of the previous
week's sharp losses as traders focused on politicians' comments indicating
readiness to compromise to avoid the U.S. "fiscal cliff."
U.S. lawmakers indicated compromises
were possible in negotiations to avert $600 billion in tax increases and
spending cuts due to start in January - the "fiscal cliff" that
threatens to send the U.S. economy back into recession.
Legislators from both parties have
indicated in recent days compromise was possible on key issues like raising tax
rates for wealthy individuals, which previously seemed unlikely.
European Central Bank policymaker
Joerg Asmussen said at the weekend that the ministers were likely to agree to
the deal and leave resolution of a longer-term debt stabilization plan for
Greece, which is at the heart of a disagreement with the IMF, until later
NYMEX - NEW YORK, Nov 19 (Reuters) - U.S.
crude rose 2.7 percent on Monday on optimism that legislators will reach a deal
to tackle the nation's fiscal crunch, with additional support coming from
escalating tensions in the Middle East.
CBOT Soybean - Chicago Board of Trade soybean futures rallied on technical buying after last week's near-five-month low, and on
spillover from higher commodity and equity markets amid signs of
progress on resolving a looming U.S. fiscal crisis.
- Additional support stemmed from
news that top global soy buyer China will temporarily halt regular soybean
sales from state reserves as Beijing starts a stockpiling program.
- USDA reported export
inspections of U.S. soybeans in the latest week at 61.992 million bushels,
above a range of trade expectations for 53 million to 59 million bushels.
- Soyoil posted the biggest
percentage gains in the CBOT soy complex, supported by USDA confirming
sales of 20,000 tonnes of U.S. soyoil to unknown destinations for 2012/13
delivery.
- Rally limited by expectations for a bumper South American soybean crop in early 2013. Argentina's main farm areas benefited from good weather in the last week, helping to advance soy planting after months of heavy rain and flooding.
- Weekly data from the U.S. CFTC
showed large speculators cut their net long in soybeans by 29 percent in
the week ended Nov. 13, the biggest percentage drop in more than 10
months, to a net long of 95,554 contracts.
FCPO - SINGAPORE, Nov 19 (Reuters) -
Malaysian palm oil futures rose to their highest in two weeks on Monday,
tracking gains in soybeans and rival soybean oil, although caution ahead of export
data kept gains in check.
China, the world's top soy buyer,
will temporarily halt regular state sales of soy from this week as Beijing
starts a stockpiling programme for the oilseed, an official think tank said on
Monday.
The move came after heavy crush
losses and weak demand that prompted Chinese buyers to cancel purchases of some
600,000 tonnes of U.S. soybeans over the past weeks.
Dalian soybean oil prices rose as
analysts said some crushers could use a possible shortage of supply as an
excuse to start hiking soy product prices, a move that could benefit competing
palm oil.
Exports of Malaysian palm oil
products for Nov. 1 to 15 fell 0.1 percent to 769,087 tonnes from 769,534
tonnes a month ago, cargo surveyor Intertek Testing Services said on Friday.Another cargo surveyor, Societe
Generale de Surveillance, reported a drop of 1.2 percent in exports for the
same period.
Regional Equities - Nov 19 (Reuters) - Major Southeast
Asian stock markets closed flat-to-weaker on thin volumes on Monday as concerns
over a Greece debt default weighed on sentiment ahead of a key meeting, despite
some optimism the U.S. could overcome an imminent fiscal crunch.
European officials are due to meet
on Tuesday and expected to discuss a two-year funding deal for Greece, a view
likely to irk the International Monetary Fund, which wants a longer-term
solution.
U.S. lawmakers' optimism on reaching
a deal to avert the $600 billion "fiscal cliff" helped boost world
equities, on hopes the move could prevent sending the world's largest economy
back into recession.
