RTRS-Malaysian exporters halt palm oil supply to Iran -sources

KUALA LUMPUR, Feb 8 (Reuters) - Malaysian palm oil exporters have stopped supplying Iran with most of the 30,000 tonnes of the food staple the Middle Eastern country buys each month, or about half its demand, as Western financial curbs on Tehran stymie payments, two trading sources said.

The halt in Malaysia's palm oil exports to Iran, which the traders said started late last year, is the latest sign that sanctions aimed at persuading Tehran to abandon a suspected nuclear weapons programme have started to bite.

The sanctions, spearheaded by the United States and European Union, have made it difficult for Iranian palm oil buyers to use letters of credit and make payments via middlemen in the United Arab Emirates (UAE) to Malaysian exporters.

Malaysia is the world No.2 producer of palm oil, used to make products from bio-diesel to cooking oil. It is a key supplier of Iran's palm oil, along with Indonesia, the world's top producer.

"Most of the companies selling palm oil to Iran have stopped since the end of last year," one trader with direct knowledge of the deals told Reuters on Wednesday.

Trader's Highlight

DJI- NEW YORK, Feb 8 (Reuters) - U.S. stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.

Underlying confidence kept the Dow near an almost four-year high notched on Tuesday, though trading has been quiet since last week's stellar employment report. The S&P and Nasdaq are both up 0.3 percent so far this week while the Dow is
essentially unchanged.

Greek party leaders gathered on Wednesday to agree to reforms demanded by the European Union and the Internationa Monetary Fund after delays.

European Central Bank policymakers were still divided on what contribution the bank could make to a restructuring of Greece's sovereign debt, sources said. The ECB has ruled out joining private creditors in voluntarily accepting a reduction in the value of the Greek bonds it holds.

"We would take a hit if Greece is unable to come to a deal, but lately we've been decoupling from Europe as markets catch up to how strong the economy appears to be," said Frederick.

The Dow Jones industrial average was up 5.75 points, or 0.04 percent, at 12,883.95. The Standard & Poor's 500 Index was up 2.91 points, or 0.22 percent, at 1,349.96. The Nasdaq Composite Index was up 11.78 points, or 0.41 percent, at 2,915.86.

NYMEX- NEW YORK, Feb 8 (Reuters) - U.S. crude futures rose for a second day on Wednesday, shrugging off data showing rising inventories and supported by strong gasoline futures as Brent crude pushed higher on hopes for a Greece debt deal and on
concerns about Iran.

Brent crude oil futures rose for the seventh straight day and posted their highest close in more than six months.

On the New York Mercantile Exchange, March crude rose 30 cents, or 0.3 percent, to settle at $98.71 a barrel, having traded from $98.10 to $99.01.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed lower in seesaw trade as brokers adjusted positions a day ahead of the U.S. Department of Agriculture's monthly crop reports, traders said.

Soybeans erased early gains after the dollar turned higher-- a bearish signal for dollar-backed U.S. grains and oilseeds-- and U.S. crude oil futures pared early advances.

March soybean futures matched their Jan. 3 high of $12.44-3/4 in overnight Globex trade but failed to break through resistance and move higher.

Additional pressure from much-needed rains that fell in the last day in Argentina, bolstering soybean yield prospects. Up to 3.5 inches fell in parts of Buenos Aires, said Drew Lerner of U.S.-based World Weather Inc.

USDA in its February crop and supply/demand reports is expected to show a small reduction in U.S. soy ending stocks and lower its estimates of South American corn and soybean production.

FCPO- SINGAPORE, Feb 8 (Reuters) - Malaysian crude palm oil jumped to a near three-week high on Wednesday as the market reopened after a two-day break, tracking broader markets, such as soyoil, ahead of a key U.S. crop report on Thursday.

The U.S. soyoil contract for March on the Chicago Board of Trade has gained 1.8 percent this week on prospects of higher demand, setting the stage for a palm oil rally.

Investors are keeping an eye on the February crop production as well as the supply and demand reports set to be issued by the U.S Department of Agriculture on Thursday.

Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange gained 2.3 percent to close at 3,155 ringgit ($1,051) per tonne, but off the earlier high of 3,158 ringgit, a level last seen on Jan. 26. Traded volumes stood at 24,972 lots of 25 tonnes each, just slightly thinner than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 8 (Reuters) - Southeast Asian stock indexes rose on Wednesday as strong oil and metal prices bolstered commodities-related shares, and on hopes the Greece would agree to a reform deal that would open the way for a new
international rescue package.

Shares of Golden Agri climbed 2.6 percent to their highest in more than one year, Sime Darby rose 2.3 percent to the highest in almost three years, Indorama surged 10.07 percent to five-month highs.