RTRS- India's Sept refined palm oil imports up 40 pct

MUMBAI, Oct 15 (Reuters) - India imported 111,163 tonnes of refined palm oil in September, a leading trade body said on Monday, an increase of 39.9 percent from August, exceeding expectations in a rise traders attributed to purchases ahead of the country's festival season.

Total vegetable oil imports in September were 993,912 tonnes, up from 897,018 tonnes in the previous month, the Solvent Extractors' Association (SEA) said in a statement.

India, the world's top importer of vegetable oils, buys mainly palm oil from Indonesia and Malaysia. It also imports a small quantity of soyoil from Brazil and Argentina.

"The festive season and lower prices of palm oil also boosted the demand," said Faiyaz Hudani, a senior analyst at Kotak Commodities, referring to the Hindu festivals of Dussehra later this month and Diwali, the festival of lights, early in November, which are traditionally a time of peak consumption.

Some refined palmolein bought in earlier deals arrived last month as sellers refused to convert those volumes to the crude variant after India hiked the import cost of refined palm oil from Aug. 1, traders said.

"Some deferred refined palmolein contracts arrived last month," said Sat Narain Agarwal, a Delhi-based trader.

The Reuters survey had forecast average vegetable oil imports of 956,625 tonnes in September, with 61,250 tonnes of refined palm oils.

India's refined palm oil imports rose more than 57 percent to 1.5 million tonnes in the first 11 months of the marketing year from November 2011 after top producer Indonesia changed its tax structure in October last year.

Total palm oil imports rose last month as overseas purchases of the crude variety rose, fuelled by low prices caused by higher stocks in Malaysia, the world's No. 2 producer.

Lower prices for palm oil also widened the commodity's premium to rival soft oils such as soy and sunflower, which could cause a decline in their share of September imports, traders said in the survey.

Overall palm oil imports rose 19.18 percent to 837,417 tonnes but soyoil purchases fell 47 percent to 59,000 tonnes. Imports of sunflower oil rose about 16 percent to 80,000 tonnes in September.

Total imports of vegetable oil, including small amounts of non-edible oils, rose 10.8 percent from August to 993,912 tonnes, boosted by a surge in the import of refined palm oil.

RTRS- Malaysia may issue tax free crude palm oil export quota in 2013

KUALA LUMPUR, Oct 15 (Reuters) - Malaysia may continue issuing a tax free crude palm oil quota to some firms next year, a senior industry source told Reuters on Monday, as planters resist a government plan to abolish the export facility in the word's No.2 producer of the edible oil.

The source, who has direct knowledge of government policy making, said some plantation companies had asked the commodities ministry to make an exception so that firms with refineries overseas can maintain profit margins.

"There are already some protests. Some of the planters are asking the government to reconsider and make exceptions," said the source, who could not be identified as he is not authorised to speak to the media.

Planters have relied on an annual tax free crude palm oil export quota of about 3 million tonnes to feed their overseas refineries, limiting feedstock costs and turning the sector into one of the most profitable in global agriculture.

Malaysia last week announced plans to scrap the duty free facility from Jan. 1, 2013 to help refiners, who say margins have come under pressure as the quota artificially removes crude palm oil from the market and raises feedstock costs.

"The government last week made a decision to help the downstream part of the palm oil industry by removing the quota and keeping the crude palm oil export tax at a manageable level," said the source, in reference to a plan to cut the tax to 4.5-8.5 percent from 23 percent currently.

"The big planters want some exceptions and the model is going to be altered," the source said.

UNDER SCRUTINY

The export quota has come under scrutiny after Indonesia, the world's top producer, slashed its refined palm oil export tax to half of the crude grade in September last year that boosted margins for local processors.

Indonesian exporters were then able to offer cargoes at a cheaper price, grabbing market share away from Malaysia and helping to lift stocks in its competitor that hit a record high of 2.48 million tonnes in September.

Planters at an industry conference in Kuala Lumpur on Monday said the government's announcement last week would hurt future earnings and affect incomes of small farmers who get higher domestic palm oil prices for the tax quota.

Keeping farmers happy is key for the government which is headed for elections within seven months.

"The government needs to be careful and not anger the farmers," said a trader with a listed plantation company. "Companies like Felda Global, Sime Darby and IOI are also important to help as it will boost the feel good factor before the elections."

Analysts say the government is likely to keep the export quota for planters that have refineries overseas and remove those licence holders who did not make use of their facility to prevent leakages in the system.

"Potentially the government could keep the export quota for those who deserve it. I think the government announced their plans early so they could gauge the reaction," said Ben Santoso, a plantations analyst with DBS Bank in Singapore.

RTRS- U.S. corn harvest seen 80 pct done, soy 71 pct after rains

CHICAGO, Oct 15 (Reuters) - U.S. farmers slowed their pace of cutting corn and soybeans during the past week as they neared the completion of harvest, analysts said.

Rainy weather across much of the U.S. Midwest during the weekend also caused delays to the harvest, which had been progressing quickly throughout the fall.

Growers are expected to have harvested 80 percent of their corn crop and 71 percent of soybeans as of Oct. 14, according to the average of estimates in a Reuters poll of 14 analysts.

Widespread rainfall hit the region during the weekend, with as much as two to three inches falling in places. Drier weather was expected early in the week but there will not be enough time to dry out fields before more rain arrives in the second half of the week.

The U.S. Department of Agriculture will release its weekly update of harvest progress at 3 p.m. CDT (2000 GMT) on Monday.

A week ago, farmers had harvested 69 percent of their corn and 58 percent of soybeans.

"We have seen so much progress from the top states that the pace has to slow down because the big guys are done already," a trader said.

Before the recent slowdown, farmers had set a blistering pace, cutting 36 percent of their soybean crop and 30 percent of their corn crop during the previous two weeks.

Rainfall over the weekend and an outlook for more rain over the next week to 10-days will slow the final harvest of both corn and soybeans, said John Dee, meteorologist for Global Weather Monitoring.

"Harvest is winding down and the weather now is challenging," Dee said.

Trader's Highlight

DJI- NEW YORK, Oct 15 (Reuters) - U.S. stocks climbed on Monday, rebounding from last week's losses after Citigroup's earnings and retail sales sharply exceeded expectations.

Citigroup Inc C.N shares shot up 5.5 percent to $36.66 and gave the biggest lift to the S&P 500 a fter the third-largest U.S. bank reported quarterly adjusted earnings that surged from the year-ago quarter and beat expectations. The growth came as mortgage lending increased and capital markets results rebounded.

Results from Goldman Sachs GS.N are expected Tuesday. The stock gained 3.6 percent to $124.50 on Monday, while the S&P financial index .GSPF rose 1.2 percent.

Worries about third-quarter U.S. earnings have put a damper on stocks in recent weeks, with the S&P 500 falling 2.2 percent last week - its worst weekly performance in four months. But the S&P 500 is still up 14.5 percent for the year.

"It's a quiet rally after a little bit of a pullback," said Eric Kuby, chief investment officer at North Star Investment Management Corp. in Chicago.

"There is this continued sense that most money managers are trailing the index. You're not going to catch up if you're sitting in cash, so there continues to be pressure."

The three major U.S. stock indexes also drew support from optimism about retail data, which showed September retail sales rose 1.1 percent - above the 0.8 percent growth that had been anticipated.

Investors remained cautious about Europe, waiting for signs that Spain was ready to formally request a bailout, which is seen as necessary to deal with its debt crisis.

The Dow Jones industrial average .DJI rose 95.38 points, or 0.72 percent, to 13,424.23 at the close. The Standard & Poor's 500 Index .SPX gained 11.54 points, or 0.81 percent, to finish at 1,440.13. The Nasdaq Composite Index .IXIC advanced 20.07 points, or 0.66 percent, to close at 3,064.18.

Both the Dow and the S&P 500 kept above technical support levels at their 50-day moving averages. Last week's declines had left each index on the precipice of breaking below t h ose levels.

"The market's reasonably priced, and while it’s had a good move this year, I think most people have not participated so there might be an opportunity for a bit of a tailwind," said Mark Foster, chief investment officer at Kirr Marbach & Co in Columbus, Indiana.

Shares of Intel INTC.O, the world's leading chipmaker, gained 1.2 percent to $21.73 a day ahead of its earnings report. Analysts are expected to watch Intel's gross margin figures, which have been declining in the past couple of years. Intel's advance on Monday helped drive the PHLX semiconductor index .SOX up 1.5 percent.

Drugmaker shares advanced, led by Eli Lilly and Co LLY.N, up 4.1 percent at $52.53, and Abbott Laboratories ABT.N, up 4 percent at $72.05. The S&P healthcare index .GSPA climbed 1.4 percent.

Eli Lilly shares rose after the drugmaker said a late-stage study of its experimental gastric cancer drug met its main goal of improving overall survival. Abbott's stock gained after results from a mid-stage study of hepatitis C medicines.

Lending further support was a rebound in energy shares as U.S. crude curbed an earlier slide that had pushed the price down below $90 a barrel. The S&P energy index .GSPE gained 0.5 percent. O/R Brent crude rose $1.18, or 1.03 percent, to settle at $115.80 a barrel.

Profits of S&P 500 companies are seen dropping 2.3 percent this quarter from a year ago, according to Thomson Reuters data.

With about 8 percent of S&P 500 companies having reported, 58 percent of companies have topped profit expectations - less than the average beat rate of 67 percent for the past four quarters, Thomson Reuters data showed.

In other economic data, a survey showed that an index of manufacturing activity in New York state shrank for the third month in a row in October.

Volume was roughly 5.9 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.

NYMEX-NEW YORK, Oct 15 (Reuters) - U.S. crude futures rallied late to end only a penny lower on Monday, as skepticism about Iran's offer to negotiate on uranium enrichment and gains on Wall Street helped oil recover after it fell $2 and tested support near the 100-day moving average.

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell to a 3-1/2 month low below $15 a bushel on technical selling and long liquidation ahead of a potential bumper crop in South America, traders said.

* Additional pressure from talk of better-than-expected U.S. soybean yields as the harvest winds down. Ahead of USDA's weekly crop progress report expected later on Monday, analysts surveyed by Reuters pegged the U.S. soybean harvest at 71 percent complete.

• A cold front that moved into southeastern Brazil over the weekend will likely bring light rainfall to the country's main soy belt this week, providing welcome soil moisture - forecaster Somar. Brazil is expected to surpass the United States in 2012/2013 as the world's top soybean producer.

• In Argentina, rains that have slowed Argentine corn sowing are expected to give way to sunshine by midweek, setting the stage for easy planting of the country's soy crop.

• CFTC weekly data issued on Friday showed large speculators cut their bullish bets on CBOT soybeans for a sixth straight week.

• The National Oilseed Processors Association reported the U.S. soybean crush for September at 119.732 million bushels, down from 124.773 million in August but above the average trade estimate for 118.361 million.

• NOPA reported U.S. stocks of soyoil in September at 2.043 billion lbs, down from 2.168 billion in August but slightly above the average trade estimate of 2.012 billion lbs.

• Top global soy buyer China imported 4.97 million tonnes of soybeans in September, up 12.4 percent from 4.42 million tonnes in August, Chinese customs data showed. Imports of vegetable oils in September were 860,000 tonnes, up 34.4 percent from the previous month.

• China's soymeal futures 0#DSM: fell more than 3 percent on Monday to a three-month low, boosted by expectations that domestic soybean supply will improve in coming months and also due to an upgraded outlook for the U.S. crop.

• USDA reported export inspections of U.S. soybeans in the latest week at 57.825 million bushels, well above trade expectations for 40 million to 45 million.

FCPO- SINGAPORE, Oct 15 (Reuters) - Malaysian palm oil futures fell on Monday after the government last week announced tax cuts that will only take effect next year, doing little to ease record stocks in the short term.

The market was also under pressure from declines in the U.S. and China soyoil futures. U.S. soyoil for December delivery BOZ2 extended losses to almost 2 percent in late Asian trade on Monday, hitting its lowest since mid-June.

The most active January 2013 soyoil contract DBYF3 on the Dalian Commodity Exchange ended down 1.6 percent, after dropping to its lowest since early June.

"When you come into the office and see Dalian and U.S. soyoil falling, the sentiment darkens," said a trader with a foreign commodities brokerage in Malaysia.

"And this adds to the concern that Malaysia is only going to do something concrete at the start of 2013 and that means it will be hard to bring down stocks completely."

The benchmark December contract FCPOc3 on the Bursa Malaysia Derivatives Exchange dropped 2.7 percent to close at 2,433 ringgit ($796) per tonne after tumbling as much as 3.3 percent to an intraday low at 2,417 ringgit.

Total traded volumes stood at 35,166 lots of 25 tonnes each, higher than the usual 25,000 lots.

Malaysia plans a cut in crude palm oil export taxes, slated for 2013, as it moves to help refiners offer cheaper cargoes, Commodities Minister Bernard Dompok said on Friday.

But it may continue issuing a tax free crude palm oil quota to some firms next year, a senior industry source told Reuters on Monday, as planters resist the government plan to abolish the export facility in the world's No.2 producer of the edible oil.

The market expects top industry analysts Dorab Mistry, Thomas Mielke and James Fry to address the impact of the tax change at a seminar in Malaysia on Tuesday.

Latest cargo surveyor data pointing to stronger demand could help ease palm oil stocks in Malaysia, which hit a record 2.48 million tonnes in September.

Exports of Malaysian palm oil products for Oct. 1-15 rose 13.1 percent to 769,534 tonnes from 680,112 tonnes for the Sept. 1-15 period, Intertek Testing Services said on Monday.

Another cargo surveyor, Societe Generale de Surveillance, reported a higher increase of 16.3 percent on the month, to 768,550 tonnes.

Technicals showed palm oil would fall to 2,361 ringgit per tonne, as a rebound from 2,230 ringgit has finished around resistance at 2,528 ringgit, said Reuters analyst Wang Tao.

In a bearish sign for palm oil, Brent futures slipped towards $114 a barrel on Monday, falling for a second session due to worries over weak oil demand, although concerns over potential supply risks from tension in the Middle East kept losses in check.

REGIONAL EQUITY- BANGKOK, Oct 15 (Reuters) - Most Southeast Asian stock markets edged slightly higher in light trade on Monday, with selective buying in large-caps such as Petronas Chemicals PCGB.KL and Bank Rakyat BBRI.JK helping recoup losses in Malaysia and Indonesia.

Malaysia's main index .KLSE finished up 0.07 percent at 1,654.44, coming off a near two-week low of 1,649.15. Local institutions bought shares worth 77.54 million ringgit ($25.34 million) while foreign investors sold 75.9 million ringgit ($24.81 million), stock exchange data showed.

Jakarta's Composite Index .JKSE ended 0.05 percent higher. Bank Rakyat, among the actively traded stocks, gained 2 percent after Fitch Ratings affirmed its rating of the state-owned bank.

In Bangkok, telecoms shares rebounded from the morning's lows, outperforming the broader SET index .SETI, with second-ranked Total Access Communication DTAC.BK up 1.4 percent after a court dismissed a petition seeking to halt an auction of third-generation licences scheduled for Oct. 16.