RTRS-UPDATE 3-Argentine dockers end strike in Rosario grain hub

BUENOS AIRES, March 2 (Reuters) - Argentine dock workers ended a strike on Friday that had delayed dozens of grain ships in the country's main grains hub Rosario,
port chamber CAPYM said.

Dock workers who moor ships in Argentine harbors walked off the job on Thursday for an indefinite strike over what they called inadequate staffing of work shifts.

This left dozens of vessels paralyzed along the Parana River near Rosario, one of the world's biggest grain export centers.

SOMU, the union representing the dock workers, "agreed to lift the strike," Guillermo Wade, director of Argentina's CAPYM port managers chamber told Reuters. SOMU representatives could not be reached immediately for comment.

Trader's Highlight

DJI- NEW YORK, March 2 (Reuters) - The S&P and Nasdaq notched their eighth week of gains out of the last nine, but momentum ran out on Friday as stocks ended the day lower in a thinly traded session.

Energy shares were the big losers in the broad decline, falling alongside crude oil prices, though other cyclical groups, including industrials and financials, also lost
altitude.

The S&P 500 has gained almost 9 percent since the beginning of the year. But mixed economic data and tensions between Iran and Israel have given investors few reasons lately to chase the market higher after three straight winning weeks for the benchmark index.

"We're in a small pullback, but that's to be expected after a very strong rally," said David Kelly, the chief market strategist for JPMorgan Funds in New York, who added that he considered stocks cheaper than other asset classes like bonds.

The Dow Jones industrial average dipped 2.73 points, or 0.02 percent, to 12,977.57 at the close. The Standard & Poor's 500 Index slipped 4.46 points, or 0.32 percent, to 1,369.63. The Nasdaq Composite Index shed 12.78 points, or 0.43 percent, to close at 2,976.19.

NYMEX- March 2 (Reuters) - U.S. crude futures dropped nearly percent on Friday after Saudi Arabia denied a report of a ipeline fire, while a stronger dollar prompted investors to rim positions in riskier assets, including commodities.

The swift market reversal from a post-settlement rally on Thursday that was spurred by the pipeline report caused U.S. rude futures to end the week lower, ending three straight eekly gains.

NYMEX RBOB gasoline and heating oil posted sharp losses for he day. For the week, however, gasoline rose while heating oil ell.

The dollar rose against the euro after Spain set a softer eficit target this year, defying a European Union fiscal pact nd stoking fresh worries about the euro zone debt crisis.

Tensions in the Middle East, which also helped fuel Brent rude's surge on Thursday to levels not seen since a record run in July 2008 and extend a U.S. crude rally to 10-month highs, will highlight Monday's meeting in Washington between U.S. President Barack Obama and Israeli Prime Minister Benjamin Netanyahu on Monday.

On the New York Mercantile Exchange, crude for April delivery settled at $106.70 a barrel, falling $2.14, or 1.97 percent.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade rallied from early declines to set a five-month high and extend their winning streak to 10 straight sessions on a mix of technical fund buying and bullish fundamentals, traders said.

Market draws support from export demand for U.S. soybeans in the wake of expected production losses in South America, and worries that U.S. farmers might not plant enough soybeans in 2012 to meet demand.

FCPO-KUALA LUMPUR, March 2 (Reuters) - Malaysian crude palm oil futures fell on Friday as traders booked profits from a rally driven by surging crude oil prices and prospects of tighter soyoil supplies from South America.

Prices rose more than six percent in February alone and have come under pressure this week from concerns of orders shifting to Indonesia that offers more discounts due to ample feedstock and lower export taxes for refined palm oil.

"In general, demand is strong because people will buy more palm oil than soyoil due to the South American drought but Malaysia may not be capturing demand because of Indonesia," said a trader with a foreign commodities brokerage in Kuala Lumpur.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange dropped 0.8 percent to close at 3,259 ringgit ($1,085) per tonne. Traded volumes were thin at 16,601 lots of 25 tonnes each, compared to the usual 25,000
lots.

REGIONAL EQUITY- BANGKOK, March 2 (Reuters) - Most Southeast Asian stock markets posted modest gains on Friday as rising oil prices bolstered energy and resource-related shares, with foreign buying helping push Thai shares to the highest in almost 16 years.

Foreign inflows into the Thai market have gathered steam this year on hopes of a recovery in the flood-hit economy, and as improving U.S. economic data boosts investors' appetite for
riskier assets.

Singapore was up 0.49 percent and Malaysia gained 0.66 percent, climbing at one point to the highest in more than seven months.

RTRS-UPDATE 2-Rains help Argentina's soy, corn crops recover

BUENOS AIRES, March 1 (Reuters) - A leading Argentine grains exchange held its soy and corn harvest estimates steady on Thursday, saying the rains that soaked fields over the past
week have improved the outlook for soybeans.

Buenos Aires Grains Exchange forecast soy production at 46.2 million tonnes and expects a corn harvest of 21.3 million tonnes. Argentina is the world's no. 3 supplier of soybeans and
the second-biggest corn supplier after the United States.

Weeks of dry weather dimmed prospects for a record 2011/12 harvest in the South American country, which is also the top supplier of soyoil and soymeal.

Farmers will begin gathering soy in the coming weeks. Recent showers have brightened prospects for later-seeded crops, though they came too late for many corn plants and early-seeded soy.

"The moisture accumulated up to now is favoring growth and development of later-seeded fields and boosting yields," the exchange said in a weekly report.

Although showers also helped the worst-hit early-planted crops, yields will be reduced 15 to 20 percent due to the dryness in December and January, the exchange said. More rains
are expected starting on March 5.

Trader's Highlight

DJI-NEW YORK, March 1 (Reuters) - Global stocks rose on Thursday as investors focused on an improving U.S. labor market and other data in hopes the rally would advance further, while crude oil surged on news that Israel would soon test-fire a
ballistic interceptor missile.

The European Central Bank's second massive injection of cash also buoyed sentiment in equity markets, lifting European shares more than 1 percent and removing the fear of a meltdown in the banking sector that had cast a pall over markets.

"They are on the right road, which means that the risks associated with Europe are starting to abate. And that's really good news," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.

U.S. stocks recouped losses from Wednesday after the latest data on jobless claims bolstered views of an improving American labor market and solid monthly sales from retailers fed investor sentiment.

However, gains were muted due to fears that other data signaling slower growth will prevent this year's rally, which has pushed major stock indexes to multi-year highs, from climbing much further.

The Dow Jones industrial average closed up 28.23 points, or 0.22 percent, at 12,980.30. The Standard & Poor's 500 Index rose 8.41 points, or 0.62 percent, at 1,374.09. The Nasdaq Composite Index added 22.08 points, or 0.74 percent, at 2,988.97.

NYMEX- NEW YORK, March 1 (Reuters) - U.S. crude futures rose sharply on Thursday and global benchmark Brent crude jumped to its highest intraday price since 2008 after a report out of Iran of a pipeline fire in Saudi Arabia.

Iranian media reported an explosion on an unknown oil pipeline in the oil-rich Eastern Province of Saudi Arabia, although the report was not verified.

Prices pulled back after Dow Jones newswires reported a Saudi oil official said the report was untrue, according to CNBC television.

Ahead of that flurry of activity, crude futures on both sides of the Atlantic had been lifted by supportive economic data from China and the United States and the ongoing concerns about supply disruptions and tensions with Iran.

On the New York Mercantile Exchange, (month) crude rose $1.77, or 1.65 percent, to settle at $108.84 a barrel, before rising to $110.55 in post-settlement trading,
the highest since May 2011.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade closed higher, extending their rally to nine days on fund-driven technical buying and expectations of continued export sales to top buyer China, traders said.

Spot soybean contract reached a high of $13.17-1/2 per bushel, matching the five-month high set Wednesday.

New-crop November soybeans posted the biggest gains on worries that U.S. farmers might not plant enough soybeans this spring to meet demand.

Argentina's 2011/12 soy harvest is expected to come in at 48 million tonnes and the corn crop is projected at 22 million tonnes, President Cristina Fernandez said.

Argentine dock workers went on strike, port chamber CAPYM said, slowing the country's ports just ahead of the corn and soybean harvests. [ID:nL2E8E183X]

USDA reported export sales of U.S. soybeans in the latest week at 976,400 tonnes, above a range of trade estimates for 400,000 to 800,000 tonnes. USDA pegged weekly soymeal sales at 40,000 tonnes and soyoil sales at 4,800 tonnes, both below trade
expectations.

FCPO- SINGAPORE, March 1 (Reuters) - Malaysian crude palm oil futures edged up on Thursday, spurred by positive factory data from second-largest importer China but gains were capped as export trends showed weaker demand.

Malaysian export numbers eased in February, cutting palm oil gains to 3.4 percent so far this year. Some market players attributed the lower exports to a shift in orders to top producer Indonesia, which slashed export taxes for refined
products.

"Exports are slightly negative because it suggests demand remains relatively weak, but it could be because we have fewer working days in February," said Ivy Ng, an analyst with Malaysia's CIMB Investment Bank.

"It also may be because logistics have not been smooth due to the holiday season. It could also imply that demand has been shifting to Indonesia because of the favourable tax structure there."

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.5 percent to close at 3,285 ringgit ($1,095) per tonne. Traded volumes stood at 20,170 lots of 25 tonnes each, thinner than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, March 1 (Reuters) - Philippine shares hit an all-time high on Thursday on expectations the central bank would cut interest rates to boost the economy, but most other Southeast Asian stock markets succumbed to profit taking as
investors locked in some of this year's strong gains.

The Philippine main index ended the day up 0.8 percent, after surging more than 2 percent at one point to an intraday record high of 5,011.09 points.

As expected, the central bank cut its main policy rate by 25 basis points after the market close to a record low of 4 percent to help cushion the domestic economy from the global slowdown.

Bank shares saw strong gains on hopes lower rates would boost demand for loans and spur earnings growth. Top lender Bank of the Philippine Islands ended nearly 5 percent higher and second-ranked Metropolitan Bank & Trust Co rose 3.7 percent.

Among more actively-traded stocks, Singapore telecommunications Ltd lost 1.3 percent after Wednesday's 1.3 percent rise. One trader attributed the fall to
profit-taking.

RTRS--INTERVIEW-Investors in Malaysia may shift palm refining ops to Indonesia

KUALA LUMPUR, Feb 29 (Reuters) - Foreign investors in Malaysia may shift some existing palm oil refining operations to top producer Indonesia to tap higher margins after Jakarta lowered its processed edible oil export taxes, said a top Malaysian industry official.

That may put Malaysia's over $20 billion industry in jeopardy as foreign investors and smaller palm oil refiners process 60 percent of the country's output, said Palm Oil Refiners Association of Malaysia (PORAM) Chief Executive Mohammad Jaaffar Ahmad.

"Malaysia cannot afford to lose the investment already made by these non-integrated refineries," Mohammad told Reuters in an interview on Wednesday ahead of the Bursa Malaysia Palm Oil Conference next week.

"The consequence could be catastrophic especially for the smallholders and private millers which are depending on them now to off-load their fresh fruit bunches and crude palm oil."

Mohammad did not give a value for the investments at stake but firms like U.S. agribusiness Cargill [CARG.UL] and Japan's Nisshin Olio <2602.T> operate refineries in Malaysia where the margins have come under severe pressure in recent months.

This is due to Indonesians offering discounts on processed palm oil to markets in India and Pakistan as they enjoy a price advantage of $100 per tonne because of lower export taxes, Mohammad said.

RTRS-China soy crushing margins improve amid low stocks - CNGOIC

BEIJING, Feb 29 (Reuters) - Soy crushers in China, the world's top buyer of the oilseed, have increased output in recent weeks because of improved crushing margins, which should boost soy imports, an official think-tank said on Wednesday.

Robust demand from China has already driven up Chicago Board of Trade soy prices <0#S:> to a five-month high this week.

Crushing margins have stayed positive for the past three weeks after a rebound in domestic prices of soy products, including soymeal , said the National Grain and Oils Information Centre at a report.

Farms have begun to restock hogs, which would spur demand for soymeal, the feed ingredient.

Stocks of imported soybean have fallen to the low level of 5.7 million tonnes compared with 6.2 million tonnes during a year earlier and imports in February and March would remain at a low level, said the centre.

The centre earlier forecast imports in February to fall to 3.7 million tonnes from January's 4.6 million tonnes, while March imports were seen at 4 million tonnes.

Trader's Highlight

DJI- NEW YORK Feb 29 (Reuters) - U.S. stocks fell on Wednesday for first time in five sessions and gold suffered its biggest one-day drop in more than three years after Federal Reserve Chairman Ben Bernanke disappointed investors who had hoped for a strong signal of more stimulus.

The major U.S. stock indexes still posted solid gains for the month, and the Nasdaq briefly topped 3,000 on Wednesday for the first time since December 2000.

Bernanke, in testimony to Congress, gave a tempered view of the U.S. economy, pouring cold water on the notion that recent upbeat signs herald a stronger recovery. But he gave no hint of new asset purchases, which the Fed has used in recent years to boost growth.

The government reported the U.S. economy grew 3.0 percent in the fourth quarter, revised up from its prior estimate of 2.8 percent. The Fed in its Beige Book, an anecdotal report on regional activity, said the U.S. economy expanded modestly in
January through mid-February.

But the disappointment over Bernanke's failure to hint at more stimulus and the end of the European Central Bank's second round of cheap bank loans drove sentiment.

At the close, the Dow Jones industrial average was down 53.05 points, or 0.41 percent, at 12,952.07. The Standard & Poor's 500 Index was down 6.50 points, or 0.47 percent, at 1,365.68. The Nasdaq Composite Index was down 19.87 points, or 0.67 percent, at 2,966.89.

NYMEX- NEW YORK, Feb 29 (Reuters) - U.S. crude futures rose after a boomerang session on Wednesday, rallying late in the open outcry session after being pressured by data showing crude oil stockpiles rose sharply last week.

Analysts and brokers said crude found support below the $105 level, then rallied back above the 10-day moving average, which Reuters data put at $105.80.

A liquidity infusion by the European Central Bank and a later Federal Reserve Beige Book report that said the U.S. economy expanded modestly in January through mid-February also provided support to oil prices.

On the New York Mercantile Exchange, April crude rose 52 cents, or 0.49 percent, to settle at $107.07 a barrel, having traded from $104.84 to $107.43.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade extended their rally to eight days, setting a five-month peak on export demand for U.S. soybeans from top buyer China and fund-driven buying, traders said.

Spot soybeans ended February up 9.6 percent, the biggest monthly rise since December 2010.

Soymeal posted the biggest gains in the complex on Wednesday, driven by so called "black box" or programmed trade, typically involving hedge funds, traders said, while soyoil fell.

Soybeans shrugged off pressure from a firmer dollar, normally a bearish signal for dollar-backed grains. The currency rose after analysts said the U.S. Federal Reserve chairman hinted the bank was in no rush to expand its balance sheet on the same day data painted a brighter picture of the U.S. economy.

USDA confirmed sales of 285,000 tonnes of U.S. soybeans to China, including 175,000 for 2011/12 delivery and 110,000 for 2012/13.

Soy crushers in China, the world's top buyer of the oilseed, have increased output in recent weeks because of improved crushing margins, which should boost soy imports, an official think-tank said.

FCPO- SINGAPORE, Feb 29 (Reuters) - Malaysian crude palm oil futures fell on Wednesday, pressured by concerns about slowing demand and the stronger ringgit currency, although hopes that the European Central Bank will offer cheap loans to European banks helped limit losses.

The ringgit-priced palm oil feedstock is now more expensive for refiners as the currency gained further against the dollar, slashing gains in palm oil prices this month to 6.2 percent from Tuesday's 7 percent.

Malaysian export numbers for February also pointed to slowing demand prospects. Some market players attributed this to a shift in orders to top producer Indonesia, which halved its export taxes for refined products.

"I think part of the reason exports are slowing could be Indonesia getting a bigger slice of the market share," said Selena Leong, an analyst at DMG & Partners Research in Singapore.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange fell 0.8 percent to close at 3,270 ringgit ($1,092) per tonne. It touched an intraday high of
3,321 ringgit on Tuesday, the highest since June 9 last year. Traded volumes stood at 21,483 lots of 25 tonnes each, lower than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 29 (Reuters) - Southeast Asian stock markets climbed on Wednesday as a continued recovery in global stock markets lured bargain-hunters to riskier assets and as investors snapped up shares of firms with favourable quarterly earnings and positive outlooks.

Trading volume picked up as more foreign funds flowed into regional assets, with market turnover in Malaysia and Vietnam surging well above the 30-day averagee.

Among major market movers on Wednesday, Singapore-listed commodity trader Noble Group Ltd surged as much as 5 percent at one point on expectations its earnings will improve this year. It closed up 3.3 percent.

Foreign investors bought 3.5 billion baht ($115 million) of Thai shares and 298.12 million ringgit ($99 million) of Malaysian, stock exchange data showed.

RTRS-Soybean output set for record 19 mln T fall-Oil World

AMSTERDAM, Feb 28 (Reuters) - Global soybean output this year is set for a record drop of 7.2 percent, or 19 million tonnes, mainly due to bad weather conditions in key growing areas in South America, Germany-based analyst Oil World forecast on Tuesday.

"World production of soybeans is likely to plunge by (a)staggering 19 million tonnes to only 246.5 million tonnes in 2011/12, according to our current estimates - the biggest year-on-year reduction ever registered," Oil World said in a monthly report.

It said prices of soybeans were firm in February, lifting prices of other oil seeds and oil meals.

Soyoil on the European vegetable oil market [OILS/E} rose 50 euros since February 1 to 960 euros a tonne on concerns that a drought in South America has hit the crop.

Oil World said that prices were further supported by strong demand from China where imports are estimated at 28.5 million tonnes of soybeans between April and September this year, an increase of 1.8 million tonnes from the same period a year ago.

Analysts believe growing demand from China, which accounts for more than half of the soybeans traded in the world, threatens to hit global supplies and stir concern over food inflation.

"The crop failure in South America will raise the world market's dependence on U.S. supplies," Oil World said.

"We already expect some shift to occur from now on resulting in a year-on-year increase of U.S. soybean exports by 1.6 million tonnes to 10.6 million tonnes in March/August, virtually offsetting the total decline in South American exports in that period primarily from Paraguay and Brazil."

The United States is the world's largest soybean exporter, followed by Brazil and Argentina.

RTRS-UPDATE 1-Singapore's Golden Agri to almost double Indonesian palm oil refining ops

SINGAPORE, Feb 28 (Reuters) - Singaporean palm oil firm Golden Agri Resources plans to nearly double its Indonesian refining capacity to 2.6 million tonnes over the next two years as it exploits the country's lower export taxes for refined edible oils, a top official said.

With currently over half a million hectares of land and 1.4 million tonne refining capacity in Indonesia, Golden Agri is a key beneficiary of Jakarta's move in 2011 to slash export taxes, the firm's Executive Director Rafael B. Concepcion Jr said.

"This (the export tax) has clearly incentivised us to continue with our strategy to producing more downstream and more value-added products and to expand the markets internationally," Concepcion said in a company earnings briefing late on Monday.

"As we look into the 2012 results we will see the full benefits being reflected in the company results," he added.

Golden Agri's fourth quarter net profit tumbled 36 percent to $748 million from a year ago, hurt by higher fertiliser costs as well as a fall in output of palm oil products. Shares dropped 2.7 percent on Tuesday after the earnings announcement.

Golden Agri's subsidiaries include Jakarta-listed SMART TBK, which manages all of Golden Agri's oil palm plantations .

Indonesia's Widjaja family controls both the firms, which dominate the Indonesian plantation sector together with Singapore-listed competitors Indofood Agri Resources and Wilmar International.

Concepcion said the Jakarta export tax changes would bring new competitors into Indonesia, the world's top palm oil producer, although their success would depend on having planted oil palms to feed the refineries.

"But ultimately it is not only the tax differential that has to be considered by potential entrants, but their ability to access supply and to market the output not only to Indonesia but also to exports market," Concepcion said.

Malaysia's second largest palm oil firm IOI Corp said on Monday it can build a refinery in Indonesia in three years once its secures higher supply from its estates in the country. [ID:nL4E8DR53V]

Golden Agri also plans to expand its presence in China by boosting its annual crude palm oil refining capacity in the world's second largest palm oil buyer to 396,000 tonnes in the first half of the year from 380,000 tonnes.

"China is the largest market for edible oil with high population, and its economy is expected to grow at respectable rates, and we do believe that this growth story will continue," said Concepcion.

Golden Agri officials said in the results briefing that the firm will set aside $500 million for growth in 2012 with half spent on developing plantations. About $200 million will be used to develop its downstream industry.

RTRS-INTERVIEW-UPDATE 1-Indonesia palm export tax risk to Malaysia refineries

PUTRAJAYA, Malaysia Feb 28 (Reuters) - The change in palm oil export tax in the world's largest supplier, Indonesia, may hurt plans for 25 new refineries in Malaysia where processors are already suffering from weak margins, a Malaysian government minister told Reuters on Tuesday.

Indonesia last year cut export taxes on refined grades that helped its domestic processors restart their factories and offer discounts to overseas buyers.

That turned margins negative for refiners in Malaysia, the No.2 palm oil producer, and the government is looking at ways to keep investments flowing into its $20 billion sector, Commodities Minister Bernard Dompok said.

"There is that certainty of losing investors. Of course, we are very concerned about these planned investments," Dompok said in an interview ahead of the Bursa Malaysia Palm Oil Conference next week.

He said the government was looking to give the refineries "assistance in some form". Some of the proposals on the table included helping existing and new refiners with grants to promote the production of higher value palm oil products used in infant formula, ice cream and vitamin E supplements, Dompok said at his office in Malaysia's administrative capital of Putrajaya.

Malaysia has 51 refineries with a combined yearly capacity of 22.9 million tonnes. It plans new capacity of 9.6 million tonnes.

The 25 new refineries are in various planning and construction phases in Malaysia's Borneo island states of Sabah and Sarawak, Dompok said.

One key investor has already shifted some of its focus to Indonesia.

Trader's Highlight

DJI- NEW YORK, Feb 28 (Reuters) - The Dow closed above 13,000 for the first time since May 2008 on Tuesday and the S&P 500 also hit a milestone, as buoyant U.S.
consumer confidence data and a sharp drop in oil prices nudged the nearly five-month rally forward.

The S&P 500 closed above 1,370, its May 2011 intraday high, a move that could invite momentum buying as money managers chase performance, though low volumes lately have
raised concerns about the rally's longevity.

The Dow Jones industrial average <.DJI> gained 23.61 points, or 0.18 percent, to close at 13,005.12. The Standard & Poor's 500 Index <.SPX> rose 4.59 points, or 0.34 percent, to end at 1,372.18. The Nasdaq Composite Index <.IXIC> climbed 20.60
points, or 0.69 percent, to finish at 2,986.76.

NYMEX- Feb 28 (Reuters) - U.S. crude oil futures ended lower for a second day on Tuesday, pressured by weak durable goods data that trumped an upbeat report on consumer confidence, and technical signals showing the market correction from near $110 a barrel has not completed.

Investors extended a profit-taking binge, with crude and refined product futures having hit overbought conditions in recent sessions. A warning over the weekend by G20 officials on the risks to global growth amid high oil prices triggered a
sell-off that began on Monday.

Forecasts in a Reuters poll ahead of weekly inventory data showing that U.S. crude and gasoline inventories rose last week also weighed on crude futures. Gasoline and heating oil futures ended sharply lower, also extending losses for a second day, on liquidations ahead of the expiration on Wednesday of their front-month March contracts.

For the moment, worries about Iranian oil supply disruptions
were in the background as the Islamic Republic's foreign minister, in a U.N.-sponsored Conference on Disarmament in Geneva, called for more talks with the U.N. nuclear watchdog and condemned production of atomic weapons as a "great sin"

The United States has imposed sanctions against Iran and a European Union ban on Iranian oil will take effect on July 1. Both aim to make Iran back down from its nuclear program that is suspected to have military objectives. Iran has denied this, but the tensions spawned by its belligerence has elevated oil prices.

A U.S. government report on the global oil markets due from the EIA on Wednesday could help determine how tough the Obama administration will be enforcing sanctions against Iran and provide information in needs to combat rising oil prices.

On the New York Mercantile Exchange, crude for Aprildelivery settled at $106.55 a barrel, down $2.01, or 1.85 percent, after trading between $106.30 and $108.79.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade advanced for a seventh straight session, reaching a five-month high on expectations that shrinking supplies in South America will boost U.S. exports, especially to top buyer China.

Global soybean output this year is set for a record drop of 7.2 percent, or 19 million tonnes, mainly due to bad weather conditions in key growing areas in South America - Oil World.

Cash basis bids for soybeans shipped by barge to the U.S. Gulf Coast were steady to firm, supported by good export demand and the need by some short-bought exporters for nearby supplies, traders said.

The March and May contracts settled above all key moving averages, and the nine-day RSI for most-active May rose to 86, from 83 ahead of the open, moving farther into the technically overbought range of 70 to 100.

Traders expect zero to 300 soybean deliveries on Wednesday, which is first notice day for March futures contracts. Traders expects zero to 300 soymeal deliveries and
2,000 to 4,000 soyoil.

FCPO- SINGAPORE, Feb 28 (Reuters) - Malaysian crude palm oil futures touched a new eight-and-a-half month high on Tuesday, buoyed by improving demand prospects, but gains were limited as investors worried about the risks to global growth from high oil prices.

Malaysian export numbers on Monday pointed to strengthening demand, helping to lift palm oil prices which have gained 7 percent so far this month.

"Exports were quite weak last month. Overall demand is higher this month and it should be positive for prices," said James Ratnam, an analyst with TA Securities in Malaysia.

"Recently the U.S. Department of Agriculture revised soybean stocks downwards. So all these things coming together and they are pushing prices up."

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.4 percent to close at 3,295 ringgit ($1,095) per tonne. It touched an intraday high of
3,321 ringgit, highest since June 9 last year.

Traded volumes stood at 25,613 lots of 25 tonnes each, higher than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Feb 28 (Reuters) - Indonesian stocks climbed more than 1 percent on Tuesday while most other Southeast Asian stock markets moved higher amid selective buying of beaten-down big caps though investors remained cautious about the impact of high oil prices.

Consumer and banking stocks that had led recent losses in such as Indonesia's PT Astra International, Thailand's Kasikornbank Pcl and Philippine Metropolitan Bank and Trust Co, recouped some lost ground.

RTRS-BRAZIL'S 2011/12 SOY CROP SEEN AT 69.9 MLN T VS 71 MLN T IN EARLY FEBRUARY - AGROCONSULT

LONDRINA, Brazil, Feb 27 (Reuters) - Brazilian agriculture consultancy Agroconsult cut its outlook on Monday for Brazil's soy crop by 1.1 million tonnes to 69.9 million tonnes from the 71 million tonnes it had forecast earlier this month.

A separate consultancy, Agrural, cut its own forecast to 68 million tonnes on Monday from the 70.2 million tonnes it had forecast in January.

Brazil's grains crops have suffered a harsh drought in southern states which top soy state Mato Grosso escaped.

RTRS-Brazil soy crop sales, harvest - Celeres

SAO PAULO, Feb 27 (Reuters) - Sales of Brazil's 2011/12 soybean crop rose to 55 percent of the total expected production of 72 million tonnes, up from 53 percent a week earlier, analysts Celeres said on Monday.

Harvest is picking up 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.

Celeres said harvest has reached 29 percent of the crop area by February 24, up from 19 percent in the week prior. Last year at this time, 19 percent of the crop had been collected. The No.1 soybean state Mato Grosso, No. 2 soy state Parana and No. 4
soy state Goias were the most advanced in harvest.

The south is due to get rain this week that should help parched crops that are still developing but will not reverse losses already caused by the drought in the region since November. Wet center-west producers should see relief from incessant rains that will favor harvest work.

Brazil is the world's second biggest 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, Feb 27 (Reuters) - Oil prices snapped a week-long rally on Monday and the S&P 500 stocks index edged up to its highest level since June 2008, while positive U.S. home sales data soothed investor worries about the effect of high energy costs on the economy.

U.S. crude oil prices fell more than 1 percent. Stocks, after a weak start, ended little changed, but the S&P was able to extend its gains for a third session.

In Asia, however, stocks were set for a shaky start, with Nikkei futures traded in Chicago falling 115 points.

The dollar rose as some of the investment money in oil flowed into currencies after officials from the Group of 20 countries sounded fears that rising energy prices were hurting global economic growth.

The greenback rebounded from a near three-month low against the euro. It hit a nine-month peak versus the yen before giving back some gains.

U.S. Treasuries climbed on demand for safe-haven government debt. The benchmark 10-year U.S. Treasury note was up 14/32, its yield at 1.9273 percent.

High energy costs have been cited as one factor preventing a runaway rally in equities.

Stocks on Wall Street are up 9 percent year-to-date, as measured by the S&P 500 index. But it has been stuck in a tight range of around 1,355-1,370 points despite data pointing to a firmer recovery in the U.S. economy, including the housing and labor markets.

The Group of 20 finance ministers and central bankers said on Sunday they were alert to risks of higher oil prices and discussed at length the impact sanctions on Iran will have on crude supplies and global growth.

At the close, the Dow Jones industrial average was down 1.44 points, or 0.01 percent, at 12,981.51. The Standard & Poor's 500 Index was up 1.85 points, or 0.14 percent, at 1,367.59. The Nasdaq Composite Index was up 2.41 points, or 0.08 percent, at 2,966.16.

NYMEX- NEW YORK, Feb 27 (Reuters) - U.S. crude oil futures fell on Monday, ending a seven-day winning streak, as overbought conditions and a warning from G20 officials about the impact of higher oil prices on global growth prompted investors to book
profits.

In regular floor-trading hours losses were capped on news that TransCanada Corp aimed to build the southern leg of its $7 billion Keystone XL oil pipeline first. That would skirt full federal review of the project and sparked competition
to move crude out of the glutted Cushing, Oklahoma, delivery point for U.S.-traded crude futures.

In post-settlement electronic trading, U.S. crude extended losses to more than $2. Analysts cited momentum trading and technical sell stops being triggered in electronic trading.

Gasoline and heating oil futures fell, dragged down by weaker crude oil and by selling ahead of weekly inventory reports.

Worries about Greek's debt crisis continued to ease as Chancellor Angela Merkel managed to get a second Greek bailout approved in the German parliament without having to rely on the votes of opposition lawmakers. But she fell short of the big
majority needed for a convincing victory.

Officials of the G20, which represents the world's leading economies, said in a meeting in Mexico City that Europe must put up extra money if it wants more help from the rest of the world, raising pressure on Germany to drop its opposition to a bigger European bailout fund.

On the New York Mercantile Exchange, crude for April delivery settled at $108.56 a barrel, down $1.21, or 1.1 percent, after trading between $108.24 to $109.77. In
post-settlement trading, it fell further to $107.27.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher for a
sixth straight session, reaching a five-month top on expectations of continued U.S. export demand from China amid shrinking soy crops in South America, traders said.

Spot soybeans hit $12.95 per bushel, the highest spot price on the continuous chart since Sept. 22, 2011. The March and May contracts broke and settled above
their 200-day moving averages.

Spot soyoil and soymeal futures also hit five-month peaks, with soyoil reaching 54.60 cents per lb and soymeal touching $340.60 a ton.

Soybeans lifted by ongoing export demand from China and outlooks for dwindling U.S. soybean supplies.

Brazilian consultancy Agrural cut its estimate of Brazil's 2011/12 soy crop to 68 million tonnes, from 70.2 million last month, while another firm, Agroconsult, lowered its forecast to 69.9 million tonnes, from 71 million previously.

FCPO- SINGAPORE, Feb 27 (Reuters) - Malaysian crude palm oil futures ended off an eight-and-a-half month high on Monday, with traders booking some profit on a rally driven by improving demand and still-high energy prices.

Oil prices also slipped below $125 after five days of gains pushed the benchmark to 10-month highs, prompting other commodity markets like palm oil to give up some gains.

Palm oil prices have gained more than 6 percent so far this year. The export trend is positive for crude palm oil prices.

High oil prices will also be supportive because about 11 percent of global vegetable oil is used for biodiesel," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.

"But the Europe situation is still unresolved in the short term and that could be mildly negative for palm oil prices," the analyst cautioned.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 0.2 percent to 3,282 ringgit ($1,086) per tonne after going as high as 3,298 ringgit,
the highest since June 9 last year. Traded volumes stood at 20,246 lots of 25 tonnes each,compared to the usual 25,500 lots.

REGIONAL EQUITY- Feb 27 (Reuters) - Southeast Asian stock markets closed weaker on Monday as rising oil prices raised concerns over global economic growth, weighing on how investors feel about the region's emerging markets.

Trading volumes were moderate as cautious investors stayed cautious, due to growth worries. Some were focusing on the European Central Bank's second refinancing operation set for Wednesday for more cues.

Foreign investors were net sellers in Indonesia with a $54.3 million outflow. Enjoying new inflows on Monday were Thailand ($20.3 million) and Malaysia (51.17 million ringgit, or $16.7million).

Oil prices held near a 10-month high on Monday due to supply concerns as tensions over Iran's disputed nuclear programme worsened, while the rise in oil weakened the outlook for industrial metals demand and pushed copper futures lower.

In Singapore, lack of positive triggers led some investors to take profits ahead of the earnings reports of several large companies, including Noble Group Ltd, Sembcorp Industries Ltd and City Developments Ltd later this week, traders said.

Gold and cash were the preferred assets for investment amongst investors, while equities have become the least favoured category, the survey, which measures attitudes towards investment conditions in Singapore, showed.

RTRS-Argentine grains truck owners vow strike in March

BUENOS AIRES, Feb 24 (Reuters) - Owners of Argentine grain trucks vowed on Friday to strike starting March 19 to demand higher transport rates, a protest that could disrupt hauling during early corn and soy harvesting.

Argentina is one of the world's top exporters of corn, soybeans and soy products, most of which are moved to port by truck. Strike threats are common at this time of year as labor unions seek annual wage hikes.

The FETRA group of trucking companies went on strike in October to demand a guaranteed minimum hauling tariff, which the government agreed to ensure nationwide.

But truck owners say this has not happened.

"The agreement we reached ... for a national tariff is not being carried out. The situation is getting worse and worse and that means we'll be forced to strike, unfortunately," said Pablo Agolanti, Fetra's vice president.

The group also seeks to reach a deal with the government to revamp its fleet of trucks and have safer, healthier conditions at Argentine ports, where drivers often wait for days to unload their cargo.

High inflation, estimated by private economists at between 20 percent and 25 percent annually, has made wage and tariff negotiations increasingly tough in recent years.

Argentine farmers began gathering the 2011/12 corn crop, which the government estimates at between 20.5 million and 22 million tonnes. In the coming weeks they will start harvesting a soy crop which is forecast at 43.5 million to 45.0 million tonnes.

Trader's Highlight

DJI- NEW YORK, Feb 24 (Reuters) - Brent oil rose above $125 a barrel to end near a 1o-month high on Friday as the United Nations' nuclear watchdog said Iran has sharply stepped up work on uranium enrichment, while the S&P 500 closed at the highest level since June 2008.

The sharp run higher in oil prices has increased worries that slower consumer demand will stymie global economic growth, particularly as the euro zone remains mired in a debt crisis and appears headed for recession.

A day after hitting a record high in euro terms, Brent crude jumped $1.85 to settle at $125.47, its fifth day of gains.

The news on Iran, in a report from the United Nation's International Atomic Energy Agency, was seen as certain to intensify concerns about Iran's atomic aims. For the week, Brent crude is up 4.9 percent, its biggest weekly percentage gain since the week to Jan. 6.

Brent's recent gains have been fueled mainly by worries over Iranian supply. European buyers of Iranian oil have cut back on purchases ahead of a European Union embargo effective July 1. Some of Iran's biggest customers in Asia including China have also reduced their buying.

"The recent resurgence in the price of crude oil has led to speculation that, in a repeat of what happened at this time last year, a spike in energy prices could undermine real economic growth just when the recovery appears to be gathering momentum again," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.

Despite oil's rise, the U.S. benchmark S&P 500 inched up to close at the highest since before the collapse of Lehman Brothers in 2008, continuing a pattern of steady gains on signs of U.S. economic recovery. World stocks gained as well.

The broad index is up more than 8 percent this year, a rally built on a succession of incremental gains and only a handful of losses, not one of them worse than a 0.7 percent drop.

Many analysts still expect a more significant pullback but a string of upbeat economic reports in recent weeks, including Friday's better-than-expected data on consumer confidence, has offset worries about an impending correction.

The Dow Jones industrial average dipped 1.74 points, or 0.01 percent, to end at 12,982.95. The Standard & Poor's 500 Index gained 2.28 points, or 0.17 percent, to 1,365.74. The Nasdaq Composite Index rose 6.77 points, or 0.23 percent, to 2,963.75.

NYMEX- NEW YORK, Feb. 24 - U.S. crude futures rose a seventh day on Friday, closing at a nine-month high and having the best week since December as the U.N. nuclear watchdog said Iran had stepped up uranium enrichment work was seen inflaming Tehran's
tensions with the West.

The seven-day rally was the longest streak of gains for U.S. crude since prices rose 10 straight days in late December 2009 to early January 2010. Prices gained more than 6 percent for the week, the best weekly performance since the week to Dec. 23.

Apart from worries of Iran supply disruptions, economic data showing that U.S. consumer confidence hit its highest point in a year this month and signs of budding recovery in the housing market added support to crude futures.

On the New York Mercantile Exchange, crude for April delivery settled at $109.77 a barrel, gaining $1.94, or 1.8 percent, the highest settlement since May 3, when prices ended at $111.05.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade settled firm on export demand from China and a foreast for U.S. soybean inventories to tighten in marketing year 2012/13, traders said.

A weaker U.S. dollar and spillover strength from U.S. crude oil futures added support.

Soybeans unofficially ended up 1 percent for the week, the second straight weekly rise and the fifth in six weeks.

USDA at its annual outlook forum projected that U.S. 2012/13 soybean ending stocks would drop to 205 million bushels, from 275 million in 2011/12.

Traders noted unconfirmed talk that China may have purchased five to 10 cargoes of U.S. soybeans this week.

USDA showed export sales of U.S. soybeans in the latest reporting week at 4,032,400 tonnes, above a range of trade estimates for 3,500,000 to 3,900,000 tonnes. USDA said China bought 521,100 tonnes for 2011/12 and 2,805,000 for 2012/13, while another 68,000 tonnes was sold to "unknown" for 2012/13.

USDA reported weekly soymeal export sales at 216,000 tonnes and soyoil sales at 25,200 tonnes, both above trade expectations.

FCPO- SINGAPORE, Feb 24 (Reuters) - Malaysian crude palm oil futures closed higher on Friday, although gains were capped as investors were wary that rising oil prices could hurt global economic growth and commodity demand.

Emerging concerns that No.2 edible oil consumer China's demand for the tropical oil could ease on high stock levels may further depress prices that rose more than 6 percent this month alone.

"China's demand for palm oil will slow down as its economy is slowing and the government is trying to maintain slow growth," said a Singapore-based physical trader with a local trading company.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange inched up 0.1 percent to close at 3,276 ringgit ($1,088) per tonne. Prices hit a high of 3,294 ringgit on Wednesday, the highest since June 9 last year. Traded volumes were thin at 19,442 lots of 25 tonnes each, compared to the usual 25,000 lots.

REGIONAL MARKET- Feb 24 (Reuters) - Southeast Asian stock markets were mixed on Friday, with Thailand hitting a near 16-year high while concerns over rising oil prices and economic slowdown in the euro zone hurt some indexes.

Despite volatility, Thailand, the Philippines and Malaysia this week enjoyed foreign inflows of $340.4 million, $133.2 million and $114 million respectively.

Improvement in the U.S. jobless data, which was at a four-year low last week, lifted market sentiment in the region slightly with Thailand gaining 0.5 percent to hit its
highest close since July 23, 1996 and Singapore adding 0.3 percent, both in moderate trading volume.

Malaysia edged up 0.1 percent with a foreign inflow of 123.48 million ringgit ($40.96 million).

Commodities led by energy shares pushed Bangkok with top oil firm PTT PCL and PTT Exploration and Production PCL gaining 0.8 percent and 2.5 percent respectively.

In Singapore, United Overseas Bank Ltd weighed on the broader market with a 1.6 percent fall after reporting poorer-than-expected earnings.

RTRS-INDONESIA SAYS KEEPS EXPORT TAX FOR CRUDE PALM OIL AT 16.5 PCT FOR MARCH -TRADE MINISTRY OFFICIAL

JAKARTA, Feb 24 (Reuters) - Indonesia, the world's top palm oil producer, will keep its export tax for the edible oil unchanged at 16.5 percent and its tax on cocoa beans at 5 percent for March, a trade ministry official said on Friday.

The government also kept the export tax for RBD palm olein at 8 percent for March.

RTRS-Rosario exchange slashes Argentine soy outlook

BUENOS AIRES, Feb 23 (Reuters) - Argentina's biggest grains exchange slashed 5 million tonnes from its forecast for the country's drought-damaged soy crop on Thursday, helping push U.S. futures to a five-month high.

Weeks of dry weather battered young soy and corn crops in the South American country. The Rosario grains exchange also trimmed its forecast for corn production, to 19.8 million tonnes from 21.4 million tonnes a month ago.

The country's soy harvest should come in at 44.5 million tonnes, the exchange said, down from the previous outlook for 49.5 million tonnes, as the extent of drought damage becomes clearer in the world's No. 3 soybean exporter.

The losses are significant in main producing provinces, especially Cordoba," an exchange report said, estimating the average yield at 2.4 tonnes per hectare.

Rosario's downbeat forecast -- as well as a weaker dollar --pushed soybean futures on the Chicago Board of Trade higher. Argentine crop problems may signal more export demand for U.S. supplies, traders said.

Trader's Highlight

DJI- NEW YORK, Feb 23 (Reuters) - Brent oil priced in euros hit a record high on Thursday on heightened tension between Iran and the West while U.S. stocks neared peaks not seen since before the 2008 collapse of Lehman Brothers.

The rise in Brent, the benchmark for European crude and most international oil trades, poses a new headache for cash-strapped Europe, still reeling from a two-year-old sovereign debt crisis.

German data helped the euro rise to its highest in 2-1/2 months against the U.S. dollar. The Ifo think tank survey of business sentiment rose to its strongest in seven months.

But forecasts for the euro zone economy underscored the pressures facing the region. The European Commission's half-yearly forecast showed output in the 17 nations sharing the euro will contract by 0.3 percent and the broader EU bloc will stagnate.

Economists worry that rising oil prices will undermine efforts to put the region on a stronger footing as well as dampen the outlook for the global economy.

Iran's stance has sparked fears that its confrontation with the West over its disputed nuclear program would escalate and affect oil flow from the Middle East.

"It's all about Iran. The inspectors leaving intensifies the concerns and backs up the Israeli argument that diplomacy will not work," said John Kilduff, partner at Again Capital LLC in New York.

Underpinning U.S. stocks, weekly jobless claims data added to signs of progress in the U.S. economy. Data showed U.S. first-time claims for unemployment benefits held steady at a four-year low of 351,000 last week.

The Dow Jones industrial average closed up 46.02 points, or 0.36 percent, at 12,984.69. The Standard & Poor's 500 Index ended up 5.80 points, or 0.43 percent, at 1,363.46. The Nasdaq Composite Index finished up 23.81 points, or 0.81 percent, at 2,956.98.

NYMEX-NEW YORK, Feb 23 (Reuters) - U.S. crude futures rose for a sixth straight session on Thursday as tensions surrounding Iran's nuclear program and the potential for supply disruption, along with a weaker dollar index, countered any pressure from
rising inventories.

After Iran did not grant the U.N.'s International Atomic Energy Agency access to areas targeted for inspection this week, fears of a confrontation with the West have been heightened.

Supreme Leader Ayatollah Ali Khamenei said Iran's nuclear policies would not change despite mounting international pressure.

The euro extended gains against the dollar and yen, hitting fresh 2-1/2 month and 3-1/2 month peaks, respectively, traders said.

The euro was bolstered by better-than-expected German business confidence data which offset a bleak economic forecast from the European Union.

U.S. crude oil inventories rose 1.63 million barrels last week, more than the 500,000 barrel build expected.

Gasoline stocks fell 649,000 barrels and distillate stocks fell 208,000 barrels. Gasoline inventories were expected to be down by only 100,000 barrels and distillates by 1.4 million barrels, a Reuters survey of analysts ahead of the weekly
inventory data showed.

On the New York Mercantile Exchange, April crude rose $1.55, or 1.46 percent, to settle at $107.83, having traded as low as $105.45 and extending gains to more than $2, above $108, in post-settlement trading.

CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher a weaker dollar and worries about South American crop problems that may signal more export demand for U.S. supplies, traders said.

Soymeal followed soybeans higher, but soyoil ended lower on profit-taking and meal/oil spreading.

Front-month March soybeans reached a five-month high at $12.80 a bushel, the highest spot soybean price since Sept 23, 2011, but pared gains by the close. Soybeans have finished higher in eight of the last nine sessions.

Argentina's Rosario grains exchange cut its estimate of the country's soy harvest to 44.5 million tonnes, down 5 million from its last monthly estimate, citing drought damage.

Weak dollar adds support, making dollar-backed soybeans more competitive. The dollar fell to a 10-week low against the euro as better-than-expected German data offset a dismal economic forecast from the European Commission.

FCPO- SINGAPORE, Feb 23 (Reuters) - Malaysian crude palm oil futures closed higher on Thursday although gains were limited by investor concern about slowing global growth that could curb commodity demand.

Prices rallied to new highs earlier this week as the second bailout deal for Greece boosted investor confidence, but worries have now set in on a longer-term growth outlook as fresh data showed the euro zone may slip into a recession.

Right now the market is tracking external markets and not so much on crude palm oil fundamentals, which are not too bullish or bearish," said James Ratnam, an analyst with TA Securities in Malaysia.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.7 percent to 3,272 ringgit ($1,086) per tonne. Prices hit a high of 3,294 ringgit on Wednesday, the highest since June 9 last year. Traded volumes were thin at 22,589 lots of 25 tonnes each, compared to the usual 25,000 lots.

Reuters analyst Wang Tao said prices will consolidate in a range of 3,244-3,292 ringgit per tonne based on technical analysis.

REGIONAL EQUITY- Feb 23 (Reuters) - Southeast Asian stock markets fell on Thursday on fears over rising oil prices and a possible recession in the euro zone with lingering concerns over Greek sovereign debt crisis still undermining the appetite for risky assets.

The region's markets, following others in Asia, fell for a second day, with MSCI's broadest index of Asia Pacific shares outside Japan <.MIAPJ0000PUS> down 0.5 percent down and the MSCI index for Southeast Asia <.MISU00000PUS> 0.3 percent weaker at
0852 GMT.

Singapore fell 0.9 percent for its lowest close since Feb. 10. Indonesia also lost 0.9 percent, to a one-week low, and had a $13.4 million foreign outflow.

Malaysia ended 0.3 percent down, but foreign investors bought a net $35 million of shares, data from the country's bourse showed.

In Singapore, disappointing earnings also hit the sentiment after Singapore's Neptune Orient Lines Ltd , the world's sixth largest container shipping firm, reported a larger-than-expected fourth quarter loss due to high fuel costs
and lower freight rates.

"Investors are getting more jittery, as we saw several corporate earnings from large blue chips that were quite disappointing," said Andrew Chow, head of research at UOB Kay Hian, citing results from palm oil firm Wilmar International Ltd on Wednesday and Neptune Orient.

Financials pulled down Jakarta and Kuala Lumpur, led by a 2.3 percent fall in Indonesia's largest lender Bank Mandiri and 1.1 percent loss for Malaysia's CIMB Group.

Analysts said the market will consolidate at a lower level said due to profit taking and concerns over the healthy recovery of the global economy.

Neptune closed 5.6 percent weaker after plummeting 11.2 percent in early trade, while Wilmar ended 1.2 percent down.

Trader's Highlight

DJI- NEW YORK, Feb 22 (Reuters) - Banks led U.S. stocks lower on Wednesday as the S&P 500 stalled near a 10-month-high after signs of weak European business activity
rekindled concerns about a recession overseas.

U.S. banks were the S&P 500's worst performing sector. Investors feared that weak euro zone growth would hamper countries dealing with heavy debt loads and the banks exposed to those debts.

"We're very concerned around the markedly deteriorating credit fundamentals in Europe," said Steven Baffico, chief executive officer at Four Wood Capital Partners in New York.

Data showing weakness in the euro zone services and manufacturing sectors overshadowed the day-old deal to bail out Greece.

The Dow Jones industrial average lost 27.02 points, or 0.21 percent, to 12,938.67. The S&P 500 Index dropped 4.55 points, or 0.33 percent, to 1,357.66. The Nasdaq Composite fell 15.40 points, or 0.52 percent, to 2,933.17.

NYMEX- NEW YORK, Feb 22 - U.S. crude edged up on Wednesday, extending gains to a fifth straight session, on worries that Iran's confrontation with the West would escalate after talks with U.N. nuclear inspectors failed.

The late recovery erased losses spurred by prospects of slower global economic growth and some profit-taking after signs of overbought conditions in NYMEX crude.

Doubts resurfaced about Greece's ability to carry out tough reform measures called for in a debt bailout, also helping pull prices down in early trading.

In post-settlement trading, U.S. crude fell back and losses increased after the industry group American Petroleum Institute reported that domestic crude stocks rose 3.6 million barrels last week, dwarfing the forecast in a Reuters poll for a 500,000
barrel build.

Heating oil futures pared gains as the API data showed a stock build of 630,000 barrels, against the forecast for a 1.4 million-barrel drawdown.

Gasoline futures also trimmed gains on API's report of a 314,000-barrel build. The forecast was for a 100,000 barrel decline.

Refinery utilization jumped 2.9 percentage points to 86.6 percent of capacity, the API said, handily beating the forecast for a 0.2 percentage point decline.

The U.S. Energy Information Administration will release its own inventory report at 11 a.m. EST (1600 GMT) on Thursday.

Both reports are delayed a day due to Monday's Presidents Day holiday.

On the New York Mercantile Exchange, crude for April delivery settled at $106.28 a barrel, up 3 cents, or 0.03 percent, marking the highest settlement for front-month crude since May 4, 2011, when prices ended at $109.24.

CBOT SOYBEANS, Soybean futures on the Chicago Board of Trade ended firm, erasing early losses as corn climbed to the day's highs toward the close and U.S. crude oil futures briefly turned positive.

Soybeans trailed gains in corn as traders unwound long soybean/short corn spreads.

Traders squaring positions ahead of USDA's annual Outlook Forum on Thursday and Friday. USDA's baseline projections earlier this month signaled a jump in U.S. corn ending stocks for 2012/13 and a drop in 2012/13 soybean stocks.

Forecasts for welcome rains in parts of South America hang over the market. Light showers moved across most of Argentina on Tuesday and minor amounts of rain fell in dry areas of southern Brazil. "There will be a few showers soon that will improve conditions in Santa Catarina and Parana in the south," said Don Keeney, meteorologist for MDA EarthSat Weather.
Keeney said the six- to 10-day outlook was for improved rainfall in the dry areas of Brazil's Rio Grande do Sul, extending into Paraguay. Recent rains improved Argentina's soy crop prospects; more rain needed in southern Brazil.

Sales of Brazil's 2011/12 soybean crop rose to 53 percent of total expected production, up from 51 percent a week earlier, analysts Celeres said. The firm said Brazil's soy harvest was 19 percent complete by Feb. 17, up from 11 percent a week earlier.

FCPO-SINGAPORE, Feb 22 (Reuters) - Malaysian crude palm oil futures ended lower on Wednesday as nervous investors booked profits after an upbeat demand outlook and stronger crude oil prices helped the edible oil scale eight-month highs earlier in
the session.

Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange eased 0.6 percent to close at 3,250 ringgit ($1,075) per tonne. Prices had earlier hit a high of 3,294 ringgit, the highest since June 9 last year.

Traded volumes stood at 23,723 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

Global markets eased slightly on Wednesday as China's manufacturing sector shrank for a fourth straight month, but crude palm oil rallied on stronger Malaysian exports.

Reuters analyst Wang Tao said a price of 3,292 ringgit per tonne remains intact for palm oil, as it is still firm on an uptrend.

Top producer Indonesia will export more palm oil to Pakistan, with volumes expected to more than quadruple to 800,000 tonnes over the next three years, said an executive at an Indonesian industry group.


Top producer Indonesia will export more palm oil to Pakistan, with volumes expected to more than quadruple to 800,000 tonnes over the next three years, said an executive at an Indonesian industry group.

REGIONAL EQUITY- Feb 22 (Reuters) - Southeast Asian stocks ended mostly lower on worries over the feasibility of the Greek deal and rising oil prices, while data showing a continuous contraction in China's factory sector kept investors cautious on Wednesday.

Benchmarks in Singapore, Indonesia, Malaysia and Thailand ended lower, while those in the Philippines and Vietnam rose.

HSBC's China flash purchasing managers index (PMI) data showed the factory sector shrinking for the fourth month in a row in February as export orders slumped. The index however rose to a four-month high of 49.7.

"Regional sentiment, Europe market are still down, indicating the Greece bailout is not enough to push up the market," said Teddy Dwitama an analyst at Jakarta-based OSK Nusadana Research.

Singapore, the region's second best performer after Vietnam this year, fell on weakness in commodities. Wilmar International Ltd fell 10.9 percent, while Noble Group Ltd lost 4.4 percent on worries over shrinking margins.

Wilmar, the world's largest listed palm oil firm posted a 57 percent jump in quarterly profit, but investors dumped shares on concerns about declining margins as the results disappointed analysts as earnings from its consumer products and palm oil businesses both fell by 12 percent despite higher sales and palm oil production volumes.