RTRS-Tugboats free grains ship blocking Argentine river

BUENOS AIRES, April 5 (Reuters) - Tugboats in Argentina's main grains export route managed on Thursday to dislodge a boat that ran aground three days ago, delaying at least 85 ships, a shipping industry group said.

The stranded vessel was preventing ships from leaving or entering the country's grains export hub, the port of Rosario. Argentina is one of the world's biggest suppliers of grains and harvesting is underway.

The Samjohn Liberty, being used by Louis Dreyfus to ship 48,000 tonnes of soymeal to Poland, ran aground on Monday about 150 kilometers (93 miles) from Rosario and tugboats were dispatched to help dislodge it.[ID:nL2E8F49D2]

Guillermo Wade, an official at the CAPyM shipping chamber, said traffic on the Parana River should soon be able to resume normal activity.

Port traffic picks up at this time of year as soy and corn harvesting gather speed in the South American country, although drought damage means soy and corn production look set to fall this season.

Earlier this year, a stranded boat disrupted shipping for almost two weeks before it could be freed. [ID:nL2E8CU6QX]

RTRS-US corn stocks seen dropping to 16-year low

April 5 (Reuters) - U.S. corn supplies are expected to fall to a fresh 16-year low before the fall harvest, said analysts polled by Reuters, signaling there will be razor-thin supplies this year that could stoke food inflation and hurt margins for food companies.

Analysts expect USDA next week to cut ending stocks by 10 percent from its March estimate due to increased demand for feed and ethanol in the wake of a severe drought reducing supplies in South America.

Prices for corn will have to rise in order to dampen demand and preserve enough supplies to be held over into the next crop year in the United States, analysts said.

The U.S. Department of Agriculture (USDA) should confirm that scenario in its supply and demand report due out at 7:30 a.m. CDT (1230 GMT) on Tuesday.

An average of analysts' estimates pegged corn ending stocks at 721 million bushels, a 16-year low and down 80 million bushels from the government forecast in March.

Analysts also predict U.S. soybean ending stocks to shrink to 246 million bushels, down 29 million bushels or 10.5 percent from USDA's March forecast of 275 million.

RTRS-Brazil 11/12 soybean output down on drought

April 4 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Brazil:

"Post estimates drought-reduced soybean production in 2011/12 at 66 million tonnes on 25 million hectares and exports at 29 million tonnes. The La Nina weather phenomenon brought a significant drought to southern Brazil resulting in an 11 percent reduction in 2011/12 crop from earlier estimates of 75 million tonnes.

Post forecasts 2012/13 soybean production at a record 77 million tonnes on an increased total area of 26 million hectares. Domestic demand for soybean oil is forecast to increase by 250,000-280,000 tonnes in 2013, should the Government of Brazil increase the biodiesel blend mandate to 7 percent from 5 percent."

Trader's Highlight

DJI- NEW YORK, April 5 (Reuters) - The euro hit a three-week low against the dollar and bonds edged higher on Thursday as Spain's debt burden fueled worries of further problems for euro zone economies and curbed appetite for riskier assets.Global stocks dipped, while energy and gold prices climbed.

A poor Spanish bond auction on Wednesday added to worries the impact of the European Central Bank's one trillion euro injection of cheap three-year funds into the banking system may be coming to an abrupt halt.

Spanish 10-year government bond yields rose as high as 5.86 percent on Thursday, dragging Italian rates in their wake as investors fled to the relative safety of German and U.S. debt.

The Dow Jones industrial average <.DJI> was down 14.61 points, or 0.11 percent, at 13,060.14. The Standard & Poor's 500 Index <.SPX> was down 0.88points, or 0.06 percent, at 1,398.08. The Nasdaq Composite Index <.IXIC> was up 12.41 points, or 0.40 percent, at 3,080.50.

NYMEX- NEW YORK, April 5 (Reuters) - U.S. crude futures rose on Thursday after two straight days of losses as data showing a drop in U.S. jobless claims combined with uncertainty about supply disruptions to prompt short-covering ahead of a long
holiday weekend.

Data showing initial jobless benefits claims fell to the lowest level in nearly four years last week arrived a day ahead of the closely watched U.S. March nonfarm payrolls report, expected to show a gain of 203,000 jobs, including a rise in
private payrolls. [ID:nL2E8F51OP] [ID:nL2E8F3COO]

The West's tightening sanctions hampering Iran's oil exports and the uncertainty ahead of talks on Tehran's disputed nuclear program expected to be held at midmonth also helped support crude prices.

On the New York Mercantile Exchange, May crude rose $1.84, or 1.81 percent, to settle at $103.31 a barrel, having traded from $101.37 to $103.40.

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade closed higher on Thursday on concerns about the size of South America's soy harvest and positioning ahead of a three-day U.S. holiday weekend, traders said.

* U.S. grain markets will be closed on Friday for the Good Friday holiday.

* Strong weekly U.S. export sales added support. USDA reported export sales of U.S. soybeans in the latest week at 1,112,900 tonnes (old and new crop years combined), above a range of trade estimates for 600,000 to 850,000 tonnes.

FCPO- SINGAPORE, April 5 (Reuters) - Malaysian palm oil futures were barely changed at the close of trading on Thursday, after gaining more than 3 percent in the last three sessions, as demand hopes stemming from worries about tighter soybean supply
continued to support prices.

Palm oil touched a near 13-month high in the previous session on expectations that global oilseed supply will tighten after a U.S. Department of Agriculture planting report showed farmers will plant less soybeans in coming months.

"The market is trading in a very tight range after a strong rally. On the local front, market players are looking out for April export numbers next week," said a trader with a foreign commodities brokerage in Malaysia.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange closed 1 ringgit higher at 3,558 ringgit ($1,161) per tonne. Prices touched a high of 3,574 ringgit on Wednesday, a level not seen since March 9 last year. Traded volumes were light at 20,806 lots of 25 tonnes each, compared to the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, April 5 (Reuters) - Stocks in Thailand and Malaysia retreated in light trade on Thursday amid profit-taking in big caps like as banks, but bargain hunting in beaten-down growth stocks lifted Indonesia.

Thailand's benchmark SET index <.SETI> ended down 1.3 percent at 1,182.41, falling at one point to 1,177.83, the lowest since March 16. The Thai market is shut on Friday and Monday for a holiday and trading will resume on Tuesday.

Singapore's main share index <.FTSTI> was nearly flat while Malaysia's main index <.KLSE> edged down 0.36 percent ahead of three day weekend, both reopening on Monday.