RTRS - Malaysia to detail crude palm oil tax cut in Dec

NUSA DUA, Indonesia, Nov 29 (Reuters) - Malaysia, the world's second largest palm oil producer, will announce details of its proposed cut to crude palm oil export taxes by the end of December, a government official said on Thursday.

"We will make an announcement on the exact pricing in the last few days of December," said the official who declined to be named due to sensitivity of the issue.

The tax, due to take effect on Jan. 1, is aimed at making crude exports more competitive in the face of a tax cut for refined grades by top producer Indonesia last year.

The Malaysian government has proposed pegging the tax at between 4.5 and 8.5 percent depending on the market prices, a cut from the current 23 percent. 

RTRS - Indonesia 2013 palm output set to rise 7 pct

NUSA DUA, Indonesia, Nov 29 (Reuters) - Palm oil output in the world's biggest producer Indonesia is expected to climb 7 percent next year to 27 million tonnes, a top industry association official said on Thursday, as three years of acreage expansion efforts bear fruit.

Output of the edible oil is also forecast to end 2012 at 25.2 million tonnes, up from 23.5 million tonnes in 2011, Fadhil Hasan, executive director at the Indonesian Palm Oil Association (GAPKI), told Reuters.

"If 2013 is going to be like 2012 in terms of weather and climate, and there are no shocks in the supply, maybe output will be about 27 million tonnes," said Hasan, speaking on the sidelines at the 8th Annual Indonesian Palm Oil Conference on the island of Bali.

"A lot of expansion has happened in the last three years or so, so now the trees are mature."

Palm estates sprawl across 8.2 million hectares in Indonesia, and that number is expected to rise by about 200,000 hectares a year for the next decade.

DEMAND WOES

Palm oil is used mainly as an ingredient in food such as biscuits and ice cream, or as a biofuel. Indonesia and Malaysia account for about 90 percent of global production.

Demand for the edible oil has fallen this year due to the global economic slowdown, which has led to record-high inventories. Benchmark palm oil futures have also lost a quarter of their value so far this year. 

Indonesian palm oil stocks are currently between 2.5 million and 2.8 million tonnes, said Hasan. "We used to have one month of production as stock but maybe more than that now," he added

Palm producers are seeking new ways to generate demand, but their efforts may be hampered by renewed attacks by Western governments on the oil's green credentials.

Environmental groups have been critical of the expansion in the palm sector, which they blame for deforestation, speeding up climate change, ruining watersheds and destroying wildlife.

"The perception, especially from European countries, towards palm oil is worse than two or three years because of the intensity and scale of campaigns by NGOs," Hasan said.

The U.S. Environmental Protection Agency recently visited Indonesia to review the environmental aspects of its palm oil industry, while France has proposed a hike in duties on foods using palm oil, which has been dubbed the "Nutella tax".

To improve its green credentials, Indonesia signed a two-year forest moratorium in May last year, although critics say breaches still occur.

Hasan urged the government not to extend the ban, which is due to end in 2013, saying it would damage the economy. The palm oil industry is one of the biggest in Indonesia.

"We don't know exactly what is going to happen, but in the interests of the Indonesian economy we hope that the moratorium is not going to be extended," Hasan said.

Trader's highlight

DJI - NEW YORK, Nov 28 (Reuters) - U.S. stocks rallied on Wednesday after comments from House Speaker John Boehner, the top Republican in Congress, on a possible compromise to avoid the "fiscal cliff" turned the market around.

The S&P 500 rebounded from a 1 percent decline, gaining more than 20 points from its low after Boehner, an Ohio Republican, said he was optimistic that a budget deal to avoid big spending cuts and tax hikes can be worked out. President Barack Obama added to the good feelings, saying he hoped to get a deal done in the next four weeks.

"The fiscal cliff is dominating the discussion, and short term, we’re a little bit too optimistic on it being fixed right away," said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York.

The market has been swinging for weeks now on headlines from Washington, with Wednesday's gyrations once again highlighting the importance that Wall Street is giving to finding a solution to avoid the series of tax increases and spending cuts that could push the U.S. economy into recession.

The Dow Jones industrial average rose 106.98 points, or 0.83 percent, to 12,985.11 at the close. The S&P 500 gained 10.99 points, or 0.79 percent, to 1,409.93. The Nasdaq Composite added 23.99 points, or 0.81 percent, to close at 2,991.78.

The S&P 500 bounced off a strong support area near 1,385 that includes both its 200- and 14-day moving averages. It closed above 1,400 for the third session in four - an optimistic sign for stock bulls.

NYMEX Crude Oil- NEW YORK, Nov 28 (Reuters) - U.S. crude futures fell a third straight session on Wednesday as concerns about fuel demand outweighed optimism about a potential deal to resolve the U.S. budget crisis.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell 0.2 percent,stalling a three-day rally as traders booked profits after the spot January contract reached a 2-1/2 week high.

* USDA confirmed sales of 290,000 tonnes of U.S. soybeans to China for delivery    in 2012/13. 

·   Concerns about excessive rains delaying soybean planting in Argentina underpinned the market. John Dee, meteorologist for Global Weather Monitoring, said rain was likely Thursday and Friday and again through much of next week.

·      Crop weather in Brazil was mostly satisfactory, but some  southern areas could use more rain, Dee said.

·           Logistical jams and transportation delays anticipated in Brazil early next year will likely slow the flow of a record soybean crop to buyers around the world who are counting on  South America to fill the gap left by drought in the United States.

·          Rabobank said in an annual outlook that it expected CBOT soybean prices to average $14.75 a bushel in the first quarter of calendar year 2013 before sliding almost 12 percent to $13 in the fourth quarter.

·          Cash basis offers for soymeal softened at a few locationsn in the interior U.S. Midwest as recent gains in CBOT futures chilled demand from livestock and poultry producers.

·          Trade expects USDA's weekly export sales report on Thursday to show sales of U.S. soybeans at 500,000 to 750,000 tonnes, soymeal sales at 150,000 to 250,000 and soyoil sales at 100,000 to 200,000 tonnes.

·          January soybeans face technical resistance at their 200-day moving average of $14.59. The contract's nine-day relative strength index stood at 51 after the close, in neutral technical territory.

FCPO - SINGAPORE, Nov 28 (Reuters) - Malaysian palm oil futures eased on Wednesday, dropping for a second straight session on concerns that U.S. fiscal woes could hamper global economic growth and commodity demand.

Prices touched their highest in almost a week on Tuesday as a Greek debt deal provided brief comfort for investors, but lack of progress in U.S. budget talks and speculation that Malaysian palm oil inventories could hit a record high this month kept prices in a tight range.

"The market looks like it's expected to just stay rangebound this week," said a Singapore-based trader with a global commodities trading house. "But for the longer term, sentiment has improved, compared to a month ago."

The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 0.7 percent to close at 2,394 ringgit ($784) per tonne. Prices traded in a range of 2,383 to 2,417 ringgit. Total traded volumes stood at 31,818 lots of 25 tonnes each, higher than the usual 25,000 lots.

The European Commission has made public a decision taken last week to allow palm oil producers under the Roundtable on Sustainable Palm Oil scheme to qualify for biofuel subsidies, a move that could spur more European demand for the tropical oil.

The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.4 percent lower.

Regional Equities - BANGKOK, Nov 28 (Reuters) - The Philippine index closed at a record high on Wednesday amid good buying interest in large caps, following stronger-than-expected third-quarter GDP growth, while Indonesia fell for a second session as market players cashed in on recent gainers.

In Manila, the index rose 0.9 percent to 5,633.72, scaling a record for the fourth session. The Philippine economy grew a faster-than-expected 7.1 percent in the September quarter, reflecting strong domestic demand and government spending.

"The Philippines is having a fantastic year despite strong global headwinds. Most nations in Asia saw a tough third quarter while the Philippines had the fastest GDP expansion since 2010," HSBC said in a report.

"This is largely due to the fact that policy makers took timely measures to counterbalance an anticipated slowdown of demand from China and the Eurozone as well as the resilient nature of the services-oriented economy," it said

In a choppy session, Jakarta's Composite Index ended down 0.8 percent at its lowest close in more than three weeks, led by a 5 percent fall in PT Astra International Tbk