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