Trader's Highlight

DJI-NEW YORK, Oct 12 (Reuters) - U.S. stocks hit fresh 5-month highs on Tuesday as details from the Fed's latest meeting showed the U.S. central bank may once again flood markets with cheap cash "before long" to further boost growth.

The minutes from the Federal Reserve's Sept. 21 meeting served as another strong signal for a stock market that has surged for weeks on rising hopes for more Fed action. The S&P 500 index is up 11.5 percent since the start of September.

The Dow Jones industrial average <.DJI> gained 10.06 points, or 0.09 percent, to 11,020.40. The Standard & Poor's 500 Index <.SPX> rose 4.45 points, or 0.38 percent, to 1,169.77. The Nasdaq Composite Index <.IXIC> added 15.59 points, or 0.65 percent, to 2,417.92.


NYMEX-NEW YORK, Oct 12 (Reuters) - Oil prices ended lower for a second day on Tuesday as OPEC signaled it will keep output targets unchanged when it meets on Thursday.

Labor unrest spread to more French ports and refineries, helping limit oil's losses for the day.

On the New York Mercantile Exchange, November crude settled down 54 cents, or 0.66 percent, at $81.67, trading from $80.88 to $82.33.

CBOT-CHICAGO, Oct 12 (Reuters) - Chicago Board of Trade grain and soybean complex closing trends on Tuesday.

CBOT-SOYBEANS - November up 26 cents at $11.78-1/2 a bushel; January up 26-1/2 at $11.89-1/2.

Strong export demand, tight supply situation supportive to soybean prices amid talk that China would make some new purchases of U.S. supplies.

USDA reported export inspections of U.S. soybeans in the latest week at 37.921 million bushels, above trade estimates for 25 million to 35 million.

CBOT-SOYOIL - October up 0.56 at 46.54 cents a lb; more active December up 0.60 at 46.95.

Following soybeans after strong overnight session despite weakness in the crude oil market.

FCPO-KUALA LUMPUR, Oct 12 (Reuters) - China's soyoil futures hovered below two-year highs hit earlier on Tuesday as news of the government lifting a ban on Argentina soyoil partly offset the bullish soybean supply scenario.

China's most active May 2011 soyoil contract on Dalian Commodity Exchange climbed 0.7 to hit 8,986 yuan -- a level unseen since Sept. 1, 2008.

Malaysia's benchmark palm futures ended 0.9 percent lower at 2,900 ringgit ($935.5) per tonne in the morning session. Traded volume was heavy, rising to 17,513 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Oct 12 (Reuters) - Thai stocks edged lower on Tuesday but recouped most of their early losses as unnerved investors returned to the market after the government imposed expected measures to tame the surging baht currency.

Gains in broad Asian currencies along with the bull run on equities in the region have been in large part the result of hot money flowing out of developed economies.

Meanwhile, broad Asian stocks fell on Tuesday ahead of the U.S. corporate earnings season.

Singapore <.FTSTI> lost 0.4 percent, Malaysia <.KLSE> edged down 0.06 percent after climbing to the highest since Jan 15 2008, and Vietnam <.VNI> dropped 1.1 percent, after a flat session on Monday.

Malaysia's IOI Corp rose 0.4 percent, building on a 1.5 percent rise on Monday while Indonesia's Astra Agro Lestari gained 4.4 percent, adding a 7.1 percent gain on Monday.

Breaking News-RTRS-China likely to lift Argentine soyoil ban - source

BEIJING, Oct 11 (Reuters) - China is likely to lift its six-month de facto ban on soyoil imports from Argentina but has not taken a final decision yet, an official Chinese source with knowledge of the situation said on Monday.
China effectively barred Argentine imports of the edible oil at the end of March amid a wider trade dispute, by restating quality standards that traders said were impossible to meet in practice.
The source said China's Ministry of Commerce was likely to reopen the trade, but did not expect a flood of Argentine imports because Argentina had already sold most of its soyoil elsewhere.

Trader's Highlight

DJI-NEW YORK, Oct 11 (Reuters) - U.S. stocks drifted in the lightest trading volume of the year on Monday as few dared to place bets ahead of key companies' results later this week.

Expectations the Federal Reserve will flood markets with even more cash have been fully priced in to the market, so investors are now focused on third-quarter earnings season, with Intel Corp scheduled for Tuesday.

The Dow Jones industrial average <.DJI> edged up 3.86 points, or 0.04 percent, to end at 11,010.34. The Standard & Poor's 500 Index <.SPX> inched up just 0.17 of a point, or 0.01 percent, to 1,165.32. The Nasdaq Composite Index <.IXIC> gained 0.42 of a point, or 0.02 percent, to 2,402.33.


NYMEX-NEW YORK, Oct 11 (Reuters) - U.S. crude oil futures ended lower in light trading on Monday as the dollar climbed back up, sparking risk aversion among oil investors.

In the early going, crude rose as the dollar weakened on expectations of a further round of monetary easing by the U.S. Federal Reserve, in view of recent weak economic data.

On the New York Mercantile Exchange, November crude settled down 45 cents, or 0.54 percent, at $82.21 a barrel, trading $82.01 to $83.50.

CBOT-CHICAGO, Oct 11 (Reuters) - Chicago Board of Trade grain and soybean complex closing trends on Monday.

CBOT-SOYBEANS - November up 17-1/2 cents at $11.52-1/2 a bushel; January up 18 cents at $11.63.

Following corn. USDA report also viewed as bullish to soybeans. Prices hit highest level since August 2009 during the session.

CBOT-SOYOIL - October down 0.24 cent at 45,98 cents a lb; more active December down 0.27 at 46.35.

FCPO-KUALA LUMPUR, Oct 11 (Reuters) - Global vegetable oil prices hit multi-year highs on Monday as Asian traders scrambled for cover after a forecast of a smaller U.S. soybean crop and the falling dollar.

China's most-active May 2011 soyoil rose 4 percent, its trading limit, to reach its highest since Sept. 1 2008 and the May 2011 palm olein contract also rose by its 5 percent daily limit to a level unseen since July. 21, 2008.

Benchmark Malaysian palm oil futures <0#KPO:> closed at 2,930 ringgit ($941.2) per tonne, after surging 6.5 percent to their highest in more than two years as news about U.S. government trimming soy and corn production outweighed the country's higher palm stocks and weaker overseas demand.

REGIONAL EQUITIES-BANGKOK, Oct 11 (Reuters) - Most Southeast Asian stock markets gained on Monday as investment funds continued to flow into emerging markets amid expectations the U.S. Federal Reserve will introduce further measures to boost the economy.

Investors pushed Malaysia <.KLSE> to a 33-month high while Singapore <.FTSTI>, Thailand <.SETI> and Indonesia <.JKSE> all snapped two-day losing streaks.

Broad Asian stock markets rose as U.S. job data boosted the chances of easier U.S. monetary policy, even though IMF and G7 meetings produced little to ease global currency tensions

Singapore's Golden Agri-Resources rose 5.2 percent, rival Indofood Agri Resources climbed 7 percent, Malaysia's IOI Corp gained 1.5 percent and Indonesia's Astra Agro Lestari jumped 7.1 percent.

The region's valuations remain relatively high, led by Indonesia's 12-month forward price to earnings ratio of 15.6 against all-Asia's 13.3, according to Thomson Reuters StarMine. That was followed by Malaysia's 15.1, the Philippines' 14.6, Singapore's 14.1, Thailand's 12.5 and Vietnam's 12.4.

Breaking News-RTRS - Rapeseed output jump in key Indian state may cut vegoil imports

NEW DELHI, Oct 8 (Reuters) - Rapeseed output in India's top producing state is likely to jump 45 percent this year, cutting cooking oil import needs by at least 5 percent for the world's top buyer in 2010/11, farm and trade officials said on Friday.
The area under cultivation for rapeseed, the main winter-sown oilseed, is likely rise as good monsoon rains give the soil moisture, improving output from last year when the worst drought in nearly four decades ravaged farms.

Breaking News-RTRS - Brazil's soy belt seen dry till mid next week

SAO PAULO, Oct 8 (Reuters) - Farmers in Brazil's soybean belt will have to wait until the middle of next week at least for rain that could potentially boost the planting of the 2010/11 crop, data from Somar meteorologists showed on Friday.

A new cold front is advancing over Brazil's southeast but has not been
enough to bring substantial rains over the center-west, Somar said in a daily soy weather bulletin.