RTRS- SOUTH AMERICAN SOYBEAN CROP LOSSES EYED

For soybeans, the ongoing effects of drought in South America remain at the fore. Analysts expect USDA to cut its soybean production estimates for Brazil, Argentina and possibly Paraguay.

As a consequence, the trade also expects USDA to lower its forecast of U.S. 2011/12 soybean ending stocks because the crop losses in South America should steer more export demand to the United States.

USDA in March pegged Brazil's soybean harvest at 68.5 million tonnes, but a report released Wednesday from USDA's attache in Brazil estimated the crop at 66 million tonnes. Attache reports are not official data but can signal moves the USDA might make in its next official forecasts.

The average Brazil soy crop estimate among 14 analysts surveyed by Reuters was 67.1 million tonnes.

USDA currently forecasts Brazil will be the world's biggest soybean exporter in the 2011/12 marketing year, with the United States and Argentina taking the No. 2 and 3 slots.

"There are no bean offers (for export) out of Argentina -- none for any slot. In Brazil, there are still offers, but they have sold so much into the export market that the crusher is getting concerned about the supplies left over," said Roy Huckabay with the Linn Group, a Chicago brokerage.

Along with increased U.S. exports, some analysts expect USDA to raise its estimate of the 2011/12 domestic soybean crush, currently forecast at 1.615 billion bushels. Soy crushers process soybeans into soyoil, which is used in foods and biodiesel fuel, and soymeal, used in livestock feed.

Bill Nelson of Doane Agricultural Services in St. Louis said a larger-than-expected U.S. crush figure reported by the National Oilseed Processors Association in mid-March laid the foundation for larger crush forecasts.

"It's indicative of stronger demand," he said of the monthly soy crush, which NOPA reported at 136.35 million bushels versus trade expectations for 134.5 million.

However, Nelson said soymeal prices have rallied sharply since the NOPA report and could hurt demand down the road.

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 soy crop sales, harvest - Celeres

SAO PAULO, April 9 (Reuters) - Sales of Brazil's 2011/12 soybean crop rose to 70 percent of the total expected production of 67.9 million tonnes, up from 68 percent a week earlier, analysts at Celeres said on Monday.

The harvest is winding down across the main center-west and southern soy belts, where rain has been less than optimal this year and will keep the world's No. 2 soybean producer from
surpassing last year's record harvest of 75.3 million tonnes.

Celeres said the harvest had reached 82 percent of the crop area by April 5, up from 76 percent in the week prior. Last year at this time, 77 percent of the crop had been collected. The No.
1 soybean state, Mato Grosso, has been finished harvesting for weeks.

No. 2 soy state Parana is nearly finished the harvest with 97 percent of its soybean brought in. No. 4 soy state Goias also recently finished with the harvest.

This week No. 3 soybean state Rio Grande do Sul is due to get rain that could slow the harvest. The water will be much too late to help the crop, which is 43 percent harvested. The state has been very dry since November and has lost a large share of its productive potential, which reached a record 11.6 million tonnes last season.

Brazil is the world's second-largest soybean producer after the United States and is expected to surpass it to become the largest exporter of the oilseed this year for the first time since 2005/06.

Trader's Highlight

DJI- NEW YORK, April 9 (Reuters) - The Dow and the S&P 500 extended losses to a fourth day on Monday, as investors took their cues from last week's disappointing jobs report, which raised fresh concerns about the U.S. economy's recovery.

Despite Monday's declines, the Dow industrials and the S&P 500 ended above their session lows. But trading has been choppy in recent weeks, with a series of gains interrupted by a few days of losses.

Banks and industrials led the S&P 500's slide, with the S&P financial sector index <.GSPF> and the S&P industrial sector index <.GSPI> each down 1.6 percent. The two sectors are closely tied to the prospects for economic growth.

The latest jobs figures added to a series of weaker-than-expected indicators, which have taken the edge off a strong multi-month rally.

In addition to the U.S. jobs figures released last week, China's surprisingly soft producer prices data sparked concerns about waning demand in the world's second-largest economy. The country's March PPI data reinforced expectations that a cooling economy has eclipsed inflation as the Chinese government's biggest near-term worry.

The Dow Jones industrial average <.DJI> fell 130.55 points, or 1.00 percent, to end at 12,929.59. The Standard & Poor's 500 Index <.SPX> slid 15.88 points, or 1.14 percent, to 1,382.20. The Nasdaq Composite Index <.IXIC> dropped 33.42 points, or 1.08 percent, to close at 3,047.08.

CBOT SOYBEAN-Soybean futures on the Chicago Board of Trade ended lower on long liquidation and profit-taking after the market set a seven-month high and ahead of a monthly U.S. government crop report, traders said.

* Soyoil gained against soymeal on oil/meal spreads.

* Spot soybeans reached $14.46-3/4 a bushel in Globex-only trade overnight, the highest spot soybean price on continuous charts since Aug. 31, 2011.

* CFTC data released Friday showed large speculators held a record-large net long position in CBOT soybeans of 206,437 contracts as of April 3, leaving the market open to bouts of
long liquidation. ID:nEMS10XE9J]

* Also, open interest in CBOT soybean futures hit a record-high 779,856 contracts as of Thursday.

* Soy market underpinned by concerns about a shrinking South American soybean harvest and worries that U.S. farmers might not plant enough soybeans this spring to meet global demand.

* Analysts surveyed by Reuters expect USDA in supply/demand reports on Tuesday to lower its forecast of U.S. 2011/12 soybean ending stocks, as well as its estimates of the 2011/12 soy
harvests in Brazil and Argentina. [ID:nL2E8F4A2E]

FCPO- SINGAPORE, April 9 (Reuters) - Malaysian palm oil futures eased on Monday, as market players booked profits from a 13-month high hit earlier in the day, with losses capped by expectations of lower stocks due to a shift in demand to palm oil from soyoil, where supply is tightening.

Industry regulator the Malaysian Palm Oil Board will issue the widely watched stocks data for March on Tuesday. [PALM/POLL]

Palm oil jumped almost 5 percent last week on improved demand following a damaging drought in soy-exporting South America and U.S. data showing farmers will plant less soy this
season, setting the stage for prices to fall back from an overbought position this week, traders said.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange closed 0.8 percent lower at 3,575 ringgit ($1,165) per tonne after going as high as 3,623 ringgit, a level not seen since March 8 last year.

Traded volumes stood at 24,548 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will also release Malaysian palm oil exports data for the first 10 days of April on Tuesday. [PALM/ITS] [PALM/SGS]

REGIONAL EQUITY- April 9 (Reuters) - Most Southeast Asian markets fell on Monday as concerns over a sharp slowdown in U.S. jobs growth reduced investor appetite for risky assets in the region with Singapore falling to a one-month low in light trading volume.

Singapore <.FTSTI> fell 0.9 percent to hit its lowest since March 7, Indonesia <.JKSE> lost 0.3 percent led by financials with a $9.3 million outflow and Malaysia <.KLSE> ended 0.5 percent weaker to its lowest since March 29.

Bucking the trend, Vietnam <.VNI> closed 0.7 percent firmer. Stock markets in Thailand <.SETI> and the Philippines <.PSI> were closed for a holiday.