RTRSUPDATE 1-Malaysia's Feb palm oil stocks rise unexpectedly, prices to fall

KUALA LUMPUR, March 12 (Reuters) - - Malaysia's palm oil stocks rose unexpectedly in February as a decline in exports outpaced a fall in output, industry regulator Malaysian Palm Oil Board said on Monday, potentially weighing on prices.

Stocks in the world's No.2 producer of the edible oil rose 2 percent to 2.06 million tonnes from January, going against market expectations for a 3 percent drop and snapping four straight months of declines.

Inventories at above 2 million tonnes suggest Malaysia has been losing market share to Indonesia, which has been offering discounts on cargoes after Jakarta slashed export taxes for refined product cargoes.

Although ample stocks in Malaysia can shore up global edible oil supply in the wake of erratic weather affecting South American soy crops, palm oil futures may come under pressure after slipping 0.2 percent ahead of the data release.

"A few people are going to get caught out," said a trader with a foreign commodities brokerage in Kuala Lumpur as the market had been rallying on expectations of strong Asian demand chasing limited edible oil output growth.

RTRS-INDIA'S FEB REFINED PALM OIL IMPORTS SEEN TREBLING VS JAN AS INDONESIA TAX CHANGES HIT-REUTERS SURVEY

NEW DELHI, March 12 (Reuters) - India's refined palm oil imports nearly trebled in February from the previous month after changes in Indonesia's export taxes and this pace could continue, putting refiners in the world's largest edible oils importer at risk of closure.

Total palm oil imports -- the bulk of India's edible oil purchases -- rose 28 percent last month to 654,167 tonnes, according to the average of a survey of eight traders, with soyoil imports seen up 69.7 percent over January.

Traders said imports of refined palm oil ranged between 250,000-300,000 tonnes in February, sharply higher than the 114,033 tonnes imported in January.

"Refined palm oil imports almost trebled last month due to the lower Indonesian export tax," said K.K. Goel, a Delhi-based trader.

Refined palm oil imports rose as the spread with crude palm oil narrowed to $35 per tonne from about $63 per tonne in October, when Indonesia, the world's top palm oil producer, lowered its export tax on the refined oil.

India mainly buys palm oils from Indonesia and Malaysia, and small quantities of soyoil from Argentina and Brazil. About half of India's 15-16 million tonnes of edible oils demand is met through imports.

Trader's Highlight

DJI-NEW YORK, March 12 (Reuters) - Defensive names rallied in an otherwise flat day for Wall Street on Monday as investors paused after recent gains and looked ahead to the Federal Reserve's monetary policy statement.

Investors will eye Tuesday's statement from the U.S. central bank's Federal Open Market Committee to see whether the Fed will cool down expectations of more easing of monetary policy, which might make it difficult to extend the rally.

Markets were recently rattled after Fed Chairman Ben Bernanke stopped short of giving a strong signal of more stimulus during congressional testimony.

The Dow Jones industrial average <.DJI> added 37.69 points, or 0.29 percent, to 12,959.71 at the close. The Standard & Poor's 500 Index <.SPX> inched up just 0.22 of a point, or 0.02 percent, to 1,371.09. But the Nasdaq Composite Index <.IXIC>
dipped 4.68 points, or 0.16 percent, to close at 2,983.66.

NYMEX- NEW YORK, March 12 (Reuters) - U.S. crude futures ended lower for the first time in four sessions on Monday as gloomy economic data from China and Italy added to fears that slowing global economic growth would zap demand for oil.

China posted its biggest trade deficit in at least a decade in February, fueling concerns that global demand is weakening.

Italy, the euro zone's third largest economy, slid into recession as fourth quarter 2011 data showed its economy shrank 0.7 percent, extending an 0.2 percent GDP decline in the third quarter.

On the New York Mercantile Exchange, crude for April delivery settled at $106.34 a barrel, falling $1.06, or 0.99 percent, after trading from $105.38 to $107.56.

CBOT SOYBEANS- Chicago Board of Trade soybean futures closed lower on profit-taking after they rallied last week to 5-1/2 month highs and on corn/soybean spreading.

Light showers in the U.S. Midwest and Plains accompanied by mild temperatures were boosting winter wheat prospects and adding valuable soil moisture ahead of spring planting of corn and soybeans.

"Overall a good outlook today for crops, it will be very mild for the next week to 10-days and there is no cold weather in sight," said John Dee, meteorologist for Global Weather Monitoring.

FCPO- KUALA LUMPUR, March 12 (Reuters) - Malaysian crude palm oil futures eased on Monday, as weak Chinese exports and a slightly bearish U.S. soybean report offset the bullish sentiment that had propelled prices to 9-month highs last week.

China posted its largest trade deficit in at least a decade, fanning concerns that slowing exports from the world's second largest economy will hurt global growth, as well as demand for palm oil.

The U.S. Department of Agriculture report on Friday was also slightly bearish on soybean oil prices, showing the fall in total consumption outpaced the decline in production.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange lost 1 percent to close at 3,317 ringgit ($1,097) per tonne. Prices hit a 9-month high of 3,368 ringgit on Friday.

Traded volumes stood at 27,074 lots of 25 tonnes each, slightly higher than the usual 25,000 lots.

REGIONAL EQUITY-BANGKOK, March 12 (Reuters) - Southeast Asian stock markets were weaker on Monday as market players cashed in recent gains in regional big caps on bearish Chinese trade data and awaited signals from a U.S. Federal Reserve meeting on Tuesday.

Big name energy shares pulled lower along with global oil prices which fell on Monday for the first time in four sessions amid profit taking. Among weak spots, Telekom Malaysia Bhd dropped 2.5 percent, its biggest daily loss in more than two months, and Indonesia's biggest firm by market value Astra Internatiional Tbk lost 0.6 percent after a combined 1.5 percent gain the past two sessions.