RTRS-MALAYSIA'S DECEMBER PALM OIL STOCKS SEEN DOWN 5.7 PCT TO 1.95 MLN TONNES FROM NOVEMBER - REUTERS SURVEY

KUALA LUMPUR, Jan 4 (Reuters) - Malaysia's palm oil stocks likely fell to a five-month low in December as a fall in production outpaced a drop in exports, a Reuters survey of seven plantation firms showed on Wednesday.

Stocks in the world's No.2 producer of the tropical oil probably dropped 5.7 percent to 1.95 million tonnes from 2.01 million tonnes in November as heavy rains disrupted harvests in parts of Malaysia.

RTRS-Indonesia palm oil output seen up 6 pct in 2012

JAKARTA, Jan 4 (Reuters) - Crude palm oil (CPO) output in Indonesia, the world's top producer, is expected to climb 6 percent to 25 million tonnes this year due to rising plantation areas, the Indonesian Palm Oil Association (Gapki) said on Wednesday.

Exports of CPO from Southeast Asia's largest economy will climb by as much as 9 percent in 2012 to 17.5-18 million tonnes, the industry group said in a statement.

Trader's Highlight

DOW JONES-NEW YORK, Jan 4 (Reuters) - Major U.S. stock indexes were little changed in a low-volume session on Wednesday, but some investors were encouraged to see equities avoid a sell-off amid lingering euro zone's debt problems.

Indexes held on to the previous day's large gains even as the euro dropped sharply against the dollar. Notably, U.S. banks held up well, even though bad news in Europe centered around the difficulties for some European lenders.

The Dow Jones industrial average <.DJI> gained 21.04 points, or 0.17 percent, to 12,418.42. The S&P 500 Index <.SPX> edged up 0.24 point, or 0.02 percent, to 1,277.30. The Nasdaq Composite <.IXIC> dipped 0.36 point, or 0.01 percent, to 2,648.36.

NYMEX-NEW YORK, Jan 4 (Reuters) - U.S. crude futures rose a second consecutive session on Wednesday after news that the European Union has reached a preliminary agreement to ban crude oil imports from Iran, reinforcing concerns about potential supply disruptions.

European governments have agreed in principle to ban imports of Iranian oil, EU diplomats said.

Ahead of the weekly reports, U.S. crude stockpiles were expected to have fallen 200,000 barrels last week, according to a Reuters survey of analysts.

On the New York Mercantile Exchange, February crude rose 26 cents, or 0.25 percent, to settle at $103.22 a barrel, trading from $101.88 to $103.74.

CBOT-SOYBEANS, Soybean futures on the Chicago Board of Trade ended up on worries about the Argentine soybean crop amid continued hot and dry weather.

Forecasters in South America said Argentina will stay hot and dry for the rest of the week, adding to worries that have led some observers to trim crop production prospects.

FCPO-SINGAPORE, Jan 4 (Reuters) - Malaysian crude palm oil futures closed unchanged on Wednesday as an improving global economic outlook offset profit-taking after a weather-fuelled rally that lifted the market to a six-week high the previous day.

Upbeat U.S. and European data pointed to improved growth prospects and commodity demand this year despite lingering worries over the euro debt crisis that helped palm oil notch its first annual decline since 2008.

For the first week of the new year, markets are focusing on dry weather in South America hurting soy yields and the chances of heavy Southeast Asian rains disrupting palm oil production.

Benchmark March palm oil futures on the Bursa Malaysia Derivatives Exchange closed unchanged at 3,225 ringgit ($1,000) per tonne.

REGIONAL EQUITIES-BANGKOK, Jan 4 (Reuters) - Most Southeast Asian stock markets pushed higher on Wednesday as renewed appetite for risk and strength in oil prices attracted funds to commodities and energy shares.

Better-than-expected economic data from major countries including the United States and China helped the outlook for the global economy, luring short-term traders.

Among gainers, Singapore's Keppel Corp Ltd , the world's largest rig builder, rose nearly 1 percent because of the positive outlook for global offshore and marine spending.