DJI- NEW YORK, June 20 (Reuters) - Major stock indexes ended a choppy trading session flat to slightly lower on Wednesday w hile Treasuries trimmed losses after the Federal Reserve extended monetary stimulus to keep the U.S. economic recovery from stalling.
Analysts said investors had expected the U.S. central bank to extend its bond-buying program - dubbed "Operation Twist" - but noted some were disappointed that it stopped short of more aggressive measures to boost growth in the face of slower U.S. hiring and a festering European debt crisis. [ID:nL1E8HJKSF]
In Operation Twist, which was to end this month, the Fed sells short-term debt it holds to buy longer-term bonds in hopes of lowering long-term borrowing costs.
Fed Chairman Ben Bernanke said that policymakers were ready and able to do more if needed, but offered few specifics.
"The most dovish investors were looking for something a little more concrete about the path to more easing, but so far, Bernanke has sounded non-committal," Standard Chartered currency strategist Mike Moran said. "He's leaving the door ajar, but that's still a slight disappointment for some."
John Canally, investment strategist and economist at LPL Financial, said "there were a lot of guys out there with the finger on the 'sell' button unless they saw balance-sheet expansion."
The Dow Jones industrial average <.DJI> dipped 12.94 points, or 0.10 percent, to 12,824.39 at the close. The Standard & Poor's 500 Index <.SPX> edged down 2.29 points, or 0.17 percent, to 1,355.69. But the Nasdaq Composite Index <.IXIC> inched up 0.69 of a point, or 0.02 percent, to 2,930.45.
NYMEX- NEW YORK, June 20 (Reuters) - U.S. crude oil futures ended nearly 3 percent lower on Wednesday as domestic crude stockpiles unexpectedly rose last week while the Federal Reserve's extension of a program to stimulate the economy disappointed investors.
CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade closed higher for
a third straight day on Wednesday on tightening U.S. supplies and worries about dry weather threatening the yield potential of the 2012 crop, traders said.
* Most-active November soybeans hit an intraday high of $13.95-3/4 per bushel, approaching its contract high at $14.00, a key resistance level.
* Spot July supported by sales of old-crop U.S. soybeans announced Tuesday, a reminder that U.S. soy remains competitive on the world market following crop losses in South America.
* Rain in southern Brazil is causing delays at the country's largest agricultural commodities ports, Santos and Paranagua, where more than 250 vessels are waiting to unload or load fertilizers, grains, sugar and other cargoes. [ID:nL1E8HK0FI]
* Dry weather is expected to keep stress on U.S. Midwest corn and soy crops for at least the next two weeks. "There's not much change in the forecasts, still not much rain for the next couple of weeks in the dry areas such as Indiana and southern Illinois," said Andy Karst, meteorologist for World Weather Inc.
* Karst said plentiful rains fell in the north and northwest Midwest in the last day but the central and southeast remained too dry. Temperatures will be a little cooler beginning mid-week, with highs in the 80s Fahrenheit rather than the 90s.
* The U.S. Commodity Futures Trading Commission approved the Chicago Board of Trade's plan to extend open-outcry grain trading by 45 minutes a day until 2 p.m. CDT, starting Monday. [ID:nL1E8HK8Q9]
FCPO- SINGAPORE, June 20 (Reuters) - Malaysian crude palm oil futures hit their highest in almost three weeks on Wednesday, as investors bet on higher demand for palm oil after hot and dry U.S. weather threatened to curb the soy crop available for crushing into edible oil.
Market players were also optimistic ahead of the U.S. Federal Reserve's policy meeting later in the day, hoping for a new round of monetary stimulus that could boost global growth and commodity demand. [MKTS/GLOB]
A 15-percent jump in Malaysian palm oil exports for the June 1-20 period from a month ago confirmed a shift of orders to the tropical oil and last-minute buying ahead of the Muslim month of fasting called Ramadan that starts in late July.
Palm oil prices crossed above the 3,000-ringgit mark for the first time since June 11, signalling traders were less cautious after the Greece elections helped ease concerns over the euro zone debt crisis.
"Demand is expected to grow as we are moving into the Ramadan month," said a trader with a foreign commodities brokerage in Malaysia.
"There's an understanding that the earlier selldown was due to the uncertainty in Europe. The crisis is still there but it's not as bad compared to before the Greece elections."
Benchmark September palm oil futures on the Bursa Malaysia Derivatives Exchange jumped 3.2 percent to close at 3,041 ringgit ($964) per tonne, after going as high as 3,058 ringgit, a level unseen since June 1.
Traded volumes stood at 52,086 lots of 25 tonnes each, more than double the usual 25,000 lots.
On the technicals front, palm oil will test resistance at 3,024 ringgit, a break above which will open the way towards 3,140 ringgit, said Reuters market analyst Wang Tao. [ID:nL3E8HK1YG]
Malaysian palm oil exports grew to 991,917 tonnes in the first 20 days of the month, said cargo surveyor Intertek Testing Services. [PALM/ITS]
Another cargo surveyor Societe Generale de Surveillance also reported a 15 percent increase in exports to 996,662 tonnes for the same period. [PALM/SGS]
Dry weather in the United States is in focus as the U.S. Department of Agriculture (USDA) said unfavourable weather had damaged soybean crop quality.
A lower soybean crop could lead to a smaller supply of soybean oil, shifting demand to the cheaper refined palm oil.
REGIONAL EQUITY- June 20 (Reuters) - All Southeast Asian stock markets gained on Wednesday for a third straight day as hopes for new monetary stimulus by major central banks and the U.S. Federal Reserve helped boost investor appetite for risky assets.
Investors hope that Europe's worsening debt crisis and faltering global growth will prompt a new round of monetary stimulus. [ID:nL1E8HJKSF]
"Everybody is hopeful of major central banks will be looking for coordinated effort," to avert faltering global growth amid the lingering euro zone debt crisis," said Song Seng Wun, an economist at CIMB, based in Singapore.
Malaysia <.KLSE> gained 0.6 percent in heavy trading volume to 1,604.39 points, near its record high of 1,609.33 hit on April 3. There was a net foreign inflow of $12.07 million.
Indonesia <.JKSE>, the region's worst performing stock market this year, rose 1.6 percent to a four-week high even though there was net foreign selling of $7.7 million. The Philippines <.PSI> gained 1.3 percent to its highest since May 11 while Singapore <.FTSTI> added 0.5 percent to hit a five-week high.
Thailand <.SETI> edged up 0.01 percent to its highest since May 17 and Vietnam <.VNI> added 0.4 percent.
