Trader's Highlight

DJI- NEW YORK, May 2 (Reuters) - The S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring fell far more than expected in April, sparking concerns that Friday's U.S. jobs report will also disappoint investors.

Private employers added 119,000 jobs in April, well short of the 177,000 expected, the ADP report showed. That sparked market rumors that Friday's payrolls data will show the economy added just 125,000 to 150,000 jobs last month, well below a Reuters consensus forecast of 170,000.[ID:nL1E8G22DM]

"If fewer and fewer people are participating in this recovery it suggests underlying weakness that we have to address, and so far policymakers' answers have been 'easy credit' - I think we need to go beyond that," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

The report came on the heels of more glum news from Europe. Euro zone factory activity contracted again last month, with the purchasing managers index, seen as a measure of how the economy will fare, falling to its lowest level since June 2009. [ID:nL5E8G223R]

The Dow Jones industrial average <.DJI> dropped 10.75 points, or 0.08 percent, to 13,268.57. The Standard & Poor's 500 Index <.SPX> fell 3.52 points, or 0.25 percent, to 1,402.30. The Nasdaq Composite Index <.IXIC> gained 9.41 points, or 0.31 percent, to 3,059.85.

The Dow on Tuesday hit a four-year high on strong manufacturing data, while the S&P 500 has struggled to make a meaningful rise above the 1,400 resistance level. Still, the S&P is up more than 11 percent for the year.

Adding to the negative tone on Wednesday, new orders for U.S. factory goods in March recorded their biggest decline in three years, even though they slightly topped forecasts. [ID:nCAT2GE847]

"What the market needs is a sign that the economy is not getting worse. Yes, the growth is slow, but it's still there," said Ralph Edwards, director of derivatives sales and trading at ITG in New York.

NYMEX- NEW YORK, May 2 (Reuters) - U.S. crude futures fell on Wednesday, pressured by data showing rising crude oil inventories and by weak economic data from the United States and Europe that reinforced concerns about demand for petroleum in a global economic slowdown.

U.S. crude inventories rose a sixth straight week, to the highest level since 1990, adding 2.84 million barrels in the week to April 27, the Energy Information Administration said in its weekly report. [EIA/S]

Expectations in a Reuters survey of analysts was for a rise of 2.5 million barrels.

More pressure on oil was provided by a government report showing new orders for U.S. factory goods in March recorded their biggest decline in three years. The Commerce Department said orders for manufactured goods dropped 1.5 percent after a revised lower 1.1 percent rise in February. [ID:nCAT2GE847]

Oil received pressure early from news that the euro zone's manufacturing sector slipped further into decline last month as a downturn appears to be taking root among core members France and Germany, a survey showed.

* On the New York Mercantile Exchange, June crude fell 94 cents, or 0.89 percent, to $105.22 a barrel, the 50-day moving average for front-month crude, having traded from $104.91 to $106.05.

* Iran said it would seek an end to sanctions over its nuclear activities at talks with big powers later this month and it sought to turn the tables on its Western foes by accusing France of helping Israel develop "inhumane nuclear weapons." [ID:nL5E8G29P4]

* Saudi Arabia repeated on Wednesday that it would not tolerate threats to the Gulf Arab states' sovereignty, the latest warning to Iran after President Mahmoud Ahmadinejad's visit to an island claimed by both Tehran and the United Arab Emirates. [ID:nL5E8G2H29]

* An oil products tanker collided with a floating offshore drilling rig as it headed inbound in the Aransas Pass Channel near Corpus Christi on the Texas Gulf Coast, the U.S. Coast Guard said. [ID:nL1E8G2KV9]

* Russian oil production edged down 0.3 percent to 10.33 million barrels per day (bpd) in April, to its lowest this year, after Gazprom trimmed output due to a refinery maintenance closure, energy ministry data showed. [ID:nL5E8G20Z1]

CBOT SOYBEAN- May 2 (Reuters) - Soybean futures on the Chicago Board of Trade fell more than 1 percent on Wednesday on technical selling including long liquidation and pressure from a stronger U.S. dollar, traders said.

* Most-active July soybeans fell nearly 1.3 percent, the biggest drop in six weeks, and fell below Monday's low in the final minute of trade.

* Funds hold a record-large net long position in CBOT soybeans, leaving the market open to periodic bouts of long liquidation.

* Continued soybean deliveries weigh on nearby contracts, pressuring old crop/new crop spreads. CBOT reported 576 deliveries against the May contract.

* The U.S. dollar index <.DXY> rose, indicating less investor appetite for risky assets such as commodities, after weak data on euro zone manufacturing and U.S. private-sector hiring fueled concerns about a global economic slowdown. [MKTS/GLOB]

* Societe Generale lifted its average 2012 soybean price forecast to $14 a bushel, from $12.50, saying the continued declines in South American production have rapidly depleted both the U.S. and global soybean inventories. [ID:nL4E8G29PD]

* USDA confirmed sales of 204,000 tonnes of U.S. soybeans to unknown destinations for delivery in 2012/13 and sales of 30,000 tonnes of U.S. soyoil to China for delivery in 2011/12. [ID:nW1E8FB03O]

* CME to expand CBOT grain and oilseed trading hours on its electronic Globex platform beginning on May 14. [ID:nWNAB5908]

* Soggy weather for at least the next 10 days in the U.S. Midwest will slow corn and soybean seedings but add valuable moisture to soil. "It looks like pretty narrow window of opportunities for planting for the next 10 days," said Jason Nicholls, meteorologist for AccuWeather.

FCPO- SINGAPORE, May 2 (Reuters) - Malaysian palm oil futures edged lower on Wednesday as expectations of higher production offset strong exports and an uptick in global economic activity.

Strong factory activity data from the United States signalled the world's biggest economy was on a recovery track, although palm investors are looking at other cues in a market that has traded in a tight range for two weeks. [ID:nL4E8G130T]

"Exports were strong but that is not the only factor. When exports were down 15 percent in the middle of April, the market also didn't respond very strongly," said James Ratnam, an analyst with TA Securities in Malaysia.

"All these things have an impact on futures prices, but people are also looking at the bigger picture."

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange inched down 0.6 percent to close at 3,452 ringgit ($1,140) per tonne.

Traded volumes stood at 27,369 lots of 25 tonnes each, higher than the usual 25,000 lots.

The focus for palm oil has now shifted to production, which is expected to be pick up in April compared to a month ago, traders said.

"We have exports which were up by 10 percent. So since the futures prices are not going up, there is an expectation that production will also be up by a double-digit percentage," said a Singapore-based trader with a commodity house.

Traders earlier feared that export demand for Malaysian oil will be down due to Indonesia's lower export tax for refined palm oil.

Yet April exports jumped by almost 10 percent from a month ago, thanks to strong demand from major food buyers China and India. [PALM/ITS] [PALM/SGS]

Malaysia's policy response to Indonesia's favourable tax structure may come after the government lists its plantation assets in a $3 billion IPO, said top industry analyst Dorab Mistry. [ID:nL3E8FR5L3]

Palm oil will fall to 3,397 ringgit per tonne based on technical analysis, said Reuters market analyst Wang Tao. [ID:nL4E8G21PZ]

Oil eased on Wednesday, as weak economic data in Europe hit the demand outlook, countering more positive figures from China and the United States. [O/R]

REGIONAL EQUITY- BANGKOK, May 2 (Reuters) - Most Southeast Asian stock markets rose on Wednesday, with benchmark indexes in the Philippines and Indonesia rising to all-time highs, as strong

U.S. economic data boosted investor appetite for risky assets, particluarly the region's energy and commodities stocks.

Jakarta's Composite Index <.JKSE> ended at 4,219.3, surpassing its previous record reached on April 3, while the Philippine index <.PSI> finished at 5,228.84.

Thai main SET index <.SETI> marked a new 16-year high, with foreign investors buying shares for a net 628.87 million baht ($20.45 million) on the day, Thai bourse said.

Malaysia also reported foreign inflows Of 210 million ringgit ($69.40 million), stock exchange data showed.

RTRS- China set to buy even more U.S. soy -Oil World

HAMBURG, May 1 (Reuters) - China is likely to buy even more U.S.-origin soybeans in the near term because of poor South American crops, Hamburg-based oilseeds analysts Oil World said on Tuesday.

"Chinese buyers will increasingly shift to U.S.-origin in the coming weeks because South American supplies are becoming tighter," Oil World said.

Chicago soybean futures rose to their highest levels since 2008 last week largely on expectations looming poor soybean crops in Argentina and Brazil will transfer demand to the United States. [ID:nL3E8FP6SJ] [ID:nL3E8FR6PG] Large sales of U.S. soybeans were reported to China on Monday. [ID:nL1E8FU307]

"We expect that insufficient South American supplies will result in a contra-seasonal increase in U.S. soybean exports to China in June/August 2012, the last quarter of this season," Oil World said.

"In our preliminary estimate we expect U.S. soybean exports of at least 2.3 million tonnes to China in June/August 2012 compared with 0.6 million tonnes in the same three months of last year."

The good export outlook means Oil World has cut its forecast of U.S. end-August 2012 soybean stocks to 5.80 million tonnes, down from its March forecast of 6.30 million tonnes and down from 5.85 million tonnes in August 2011.

China's soybean demand is likely to keep increasing in coming months, it said.

"U.S. exports to China will gain momentum and, most likely, reach a new record in Sept./Feb. 2012/13," it said.

RTRS- Indonesia lifts crude palm oil tax to 19.5 pct for May

JAKARTA, April 30 (Reuters) - Top global palm oil producer Indonesia will increase its export tax for crude palm oil ( CPO) to 19.5 percent for May from 18 percent in April due to higher international prices, a trade ministry official said on Monday.

The government will also raise its raise the export tax for RBD palm olein to 10 percent in May, versus 9 percent in April, Deddy Saleh, the director general of foreign trade at the trade ministry, told Reuters.

Indonesia sets its commodity export taxes on a monthly basis.

" CPO export tax for May is 19.5 percent because its price in international market in the last one month was increasing," Saleh said.

He also said the government would leave its tax on cocoa beans unchanged at 5 percent for May due to stable international prices.

Southeast Asia's largest economy has a palm export tax system that aims to boost downstream industries, secure domestic supplies and reduce volatility in cooking oil prices.

The tax rate for the following month is calculated based on CIF Rotterdam prices, Malaysian benchmark and Jakarta futures prices.

By the midday break on Monday, benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.1 percent to 3,501 ringgit ($1,155) per tonne. Throughout April, prices have gained about 2 percent. [POI/]

Last August, Indonesia set new palm oil export tax rules which include setting the minimum level for the CPO export tax at 7.5 percent versus 1.5 percent previously. [ID:nL4E7JQ1AG]

Trader's Highlight

DJI- NEW YORK, May 1 (Reuters) - The Dow closed at its highest level in more than four years on Tuesday after U.S. manufacturing expanded at a faster pace than expected in April, easing jitters about a slowdown in the economic recovery.

The Dow now sits at levels not seen since December 2007. The gains leave the benchmark S&P 500 within about 16 points of a high reached in May 2008. A convincing break above that level could set the market up for more gains, traders said.

"That's where a lot of traders' eyes are right now - it might be tough to get through there the first time," said Michael James, senior trader at Wedbush Morgan in Los Angeles.

The Institute for Supply Management said U.S. manufacturing growth came in at its strongest rate in 10 months in April. That reading suggested the economy remains resilient after indications it had lost momentum at the start of the second quarter. [ID:nL1E8G167H]

Early gains this year have been held in check in recent weeks on worries about U.S. economic growth.

Tuesday's move higher, which came in a relatively quiet market with European exchanges closed for May Day holidays, drove the S&P 500 within striking distance of its recent high at 1,422.38.

"If we get up there, fail and don't retrace too much before the weekend, I would not be surprised to see it move through," said James.

The Dow Jones industrial average <.DJI> gained 65.69 points, or 0.50 percent, to 13,279.32 at the close. The Standard & Poor's 500 Index <.SPX> rose 7.91 points, or 0.57 percent, to 1,405.82. The Nasdaq Composite Index <.IXIC> added 4.08 points, or 0.13 percent, to 3,050.44.

NYMEX- NEW YORK, May 1 (Reuters) - U.S. crude oil futures started May by bounding higher on Tuesday and to a five-week high as U.S. manufacturing growth in April hit the highest in 10 months, boosting the demand outlook for oil after recent data showed the economy had lost steam.

The closely watched index of national factory activity from the private Institute for Supply Management rose to 54.8 from 53.4 in March, beating expectations for a decline to 53. [ID:nL1E8G14JE]

A pickup in China's official purchasing managers' index for April also supported oil's demand prospects as it signaled that the Chinese economy may be recovering from a first quarter trough. [ID:nL4E8G10UO]

On Monday, crude futures had fallen, reversing course after six straight days of gains. The loss was marginal as investors hoped that the recent spate of bearish economic data will prod the U.S. Federal Reserve to adopt more monetary easing measures.

But Fed officials' views clashed on the issue.

On Tuesday, Atlanta Fed President Dennis Lockhart said he was not inclined to increase monetary policy accommodation, including more quantitative easing. However, Chicago Fed President Charles Evans said the Fed has a "tremendous" amount of room to ease policy as he sees the United States not likely to see a "burst" of inflation. [ID:nL1E8G19N3][ID:nL1E8G10JW]

Oil investors will await the next set of inventory data, from the federal Energy Information Administration, due on Wednesday at 10:30 a.m. EDT (1430 GMT).

* On the New York Mercantile Exchange, crude for June delivery closed $1.29 higher, or 1.23 percent, at $106.16 a barrel, the highest settlement since March 27.

* Technical buying gave the contract an added boost as it hurdled the 50-day average at $105.21, easily breaking through resistance to hit a session high of $106.43, the highest intraday price since March 28.

* J.P. Morgan Chase revised lower its 2012 price forecast for U.S. crude, also called West Texas Intermediate, by $3 to $108 a barrel as it expects the Brent/WTI spread to widen to more than $15 by the year-end. The widening will come after the spread narrows to $6 or less after a flow reversal of the Seaway pipeline from mid-May, it said. [ID: nL4E8G11XJ]

* Iraq's cude oil exports rose to 2.508 million barrels per day in April, from 2.317 million bpd in March as new offshore export terminals helped increase sales. [ID: nL5E8G10N3]

* South Sudan accused Sudan of launching an attack on an oil region of the newly independent state and said it was preparing to strike back. [ID:nL5E8G12Z2]

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade ended mixed, with nearby contracts down on profit-taking after a five-day rally that included last week's surge to a near four-year high, traders said.

* Back months ended higher on export demand for new-crop U.S. soybeans, and as traders unwound long July/short November spreads.

* Nearby soymeal fell after Monday's multi-year highs while back months ended higher, following trends in soybeans.

* Spot soyoil ended lower for a fourth straight day.

* USDA confirmed sales of 110,000 tonnes of U.S. soybeans to China for delivery in 2012/13, the second new-crop soy sale to China in as many days.

* China is likely to buy even more U.S.-origin soybeans in the near term because of poor South American crops, Hamburg-based oilseeds analysts Oil World said. [ID:nL5E8FUAG0]

* Front-month May soybeans were pressured by a second day of heavy deliveries, with CBOT reporting 757 soybean deliveries.

* CBOT reported 2,635 soyoil deliveries and no soymeal deliveries.

* USDA late Monday reported U.S. soybean planting at 12 percent complete, up from 6 percent a week earlier and ahead of the five-year average of 5 percent. [US/SOY]

* Private analyst Michael Cordonnier of Soybean and Corn Advisor lowered his forecast of Argentina's soybean crop to 40 million tonnes, from 41.5 million previously. He also cut his estimate of Brazil's soybean crop to 65 million tonnes, from 66 million previously.

FCPO- SINGAPORE, April 30 (Reuters) - Malaysian palm oil futures ended lower on Monday as slower U.S. growth raised fears of a weaker global economic outlook, although losses were limited by strong export numbers and tight global oilseed supply.

U.S. economic growth cooled in the first quarter, dampening investor sentiment, but also raising expectations that the Federal Reserve may start another round of monetary easing. [ID:nCATRFE83Z]

Malaysian palm oil exports jumped close to 10 percent from a month earlier, but it was not enough to lift futures.

"The market is range-bound trading between 3,450 and 3,500 ringgit. Although exports were up, the market didn't pick up on that as some traders didn't want to take a long position ahead of the holiday tomorrow," said a trader with a foreign commodities brokerage in Malaysia.

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange lost 1.0 percent to close at 3,471 ringgit ($1,148) per tonne. Traded volumes were thin at 21,351 lots of 25 tonnes each, compared to the usual 25,000 lots.

Malaysian palm oil exports for April improved by 9.4 percent and 10.4 percent from a month earlier, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance respectively. [PALM/ITS][PALM/SGS]

Traders said strong demand from major food buyers China and India as well as the biodiesel industry in Europe remained the main reasons behind the recovery in exports.

The market also sees tight global oilseed supply as a bullish factor for palm oil. Together with a lower soybean output, analysts said that lower palm oil production would help support prices.

"A severe structural slowdown in palm oil output is under way. The downtrend will worsen over coming seasons and is one the market can no longer afford to ignore," said Standard Chartered analyst Abah Ofon in a research note.

"We recommend shorting the September 2012 BMD crude palm oil futures at the current price of 3,450 ringgit with a target of 3,250 ringgit. From third-quarter 2012, we recommend looking for any reversal in prices to the upside with a target of 3,700 ringgit."

On the technical front, a bearish target for palm oil at 3,439 ringgit remains unchanged as indicated by its wave pattern, said Reuters market analyst Wang Tao. [ID:nL3E8FQ29B]

REGIONAL EQUITY- BANGKOK, April 30 (Reuters) - Most Southeast Asian stock markets rose on Monday tracking gains elsewhere in Asia, with Thai shares climbing to a new 16-year high as better-than-expected bank earnings attracted buyers.

Foreign investors bought Thai shares for 1.2 billion baht ($38.97 million) on Monday and purchased Malaysian shares for 80 million ringgit ($26.29 million), stock exchange data showed.

Thai stocks extended gains for seventh consecutive month in April, adding 2.65 percent, Southeast Asia's second best performer after Vietnam's 7.4 percent climb. Singapore's Straits Times index <.FTSTI> ended lower, while Vietnam's stock market was closed for a holiday.

Volume in most markets was low ahead of a holiday in most markets on Tuesday. Stocks markets in Thailand, Singapore, Vietnam, Philippines and Malaysia are closed on Tuesday, while Indonesian markets are open for trading.

Trader's Highlight

DJI-NEW YORK, April 27 (Reuters) - U.S. stocks advanced on Friday and posted their best weekly gains in a month as stronger-than-expected earnings from Amazon.com and Expedia Inc reinforced confidence in corporate performance.

Wall Street managed a fourth day of gains as the strongearnings season outweighed a surprisingly weak reading on first-quarter economic growth. [ID:nCATRFE83Z]

Online retailer Amazon climbed 15.7 percent to $226.85 and contributed half of Nasdaq's gain for the day. An S&P retail index <.RLX> rose 3.5 percent and hit an all-time high. Shares of Expedia, the Web-based travel provider, surged 23.5 percent to close at $40.31, after hitting a new high at $43 on record volume. [ID:nL2E8FQHZE] [ID:nL2E8FQFQF]

Growth in S&P 500 earnings rose to 7.2 percent this week from 3.2 percent at the start of the month, according to Thomson Reuters data. About 73 percent of the companies that have reported so far have beaten expectations.

"So far the numbers have been pretty good, and we're happy about that, but I think we have to wait to where we're done with the earnings season to really make judgments," said David James, senior vice president of James Investment Research in Alpha, Ohio.

"Going forward, the big key for people especially looking at tech is what happens with the dollar. I think the dollar will probably be stronger than people expect on a relative basis. Historically that usually means tech is the sector that gets hit the hardest."

The Dow Jones industrial average <.DJI> was up 23.69 points, or 0.18 percent, at 13,228.31. The Standard & Poor's 500 Index <.SPX> was up 3.38 points, or 0.24 percent, at 1,403.36. The Nasdaq Composite Index <.IXIC> was up 18.59 points, or 0.61 percent, at 3,069.20.

NYMEX- NEW YORK, April 27 (Reuters) - U.S. crude futures ended higher on Friday, up for the sixth session in a row, on hopes that weaker-than-expected growth data will spur the U.S. Fed to initiate more monetary-easing.

An initial estimate showed the first quarter U.S. gross domestic product expanded at a 2.2 percent annual rate, slowing from 3 percent in the fourth quarter. [ID:nCATRFE83Z]

That was below economists' expectations for a 2.5 percent pace, but stronger than the 1.5 percent or less they forecast at the beginning of the quarter.

Trading was light but perked up a bit about an hour before the close of floor trading as traders attempted to test resistance at $105, which was hit just minutes before the close. Prices then receded again.

Oil futures got support from Wall Street, which advanced for a fourth straight day, as stronger earnings from bellwether stocks overshadowed the weaker-than-expected GDP data.

CBOT SOYBEAN-April 27 (Reuters) - Chicago Board of Trade soybean futures closed higher on Friday on brisk export sales including large sales to China.

* Support also stemmed from firm cash, slow farmer selling, waning crop prospects in South America and expectations for no soy to be posted for delivery against the spot May contract. Monday is first notice day for delivery on the May contract.

* USDA on Friday said exporters had sold 110,000 tonnes of U.S. soybeans to China for 2012/13 delivery and 116,000 tonnes to unknown destinations also for 2012/13 delivery.

* Wetter weather is forecast for most of the U.S. Midwest for the next week to 10-days, which will slow seedings of the 2012 corn and soybean crops. "There is a transition to wet weather, it will definitely slow plantings but it also will add valuable soil moisture. Some areas in the northwest were getting dry," said Andy Karst, meteorologist for World Weather Inc.

* Freezing temperatures in the upper 20s degrees Fahrenheit were noted early on Friday in central Indiana, northwest Ohio and Michigan and another freeze is expected in the eastern Midwest on Sunday. "I don't think there will be any permanent damage. It will burn back vegetation and slow wheat development. After the weekend there should be warmer temperatures," Karst said.

* May is above all key moving averages and the nine-day RSI was at 76.

FCPO- SINGAPORE, April 27 (Reuters) - Malaysian palm oil futures ended slightly higher on Friday as tight soybean supplies from Argentina trumped concerns triggered by a Spanish debt downgrade, with traders awaiting export data on Monday for more clues on price movements.

Palm oil ended the week only 0.1 percent higher compared to a week ago, with investor sentiment caught in a tug of war between tight global oilseed supply due to bad weather in Argentina and concerns about euro zone debt.

"The market is a bit quiet today ahead of the weekend. There is no direction as traders are waiting for developments in the market, plus price movements in CBOT and Dalian soybean oil look insignificant," said a trader with a foreign commodities brokerage in Malaysia.

"The market looks to be rangebound between 3,480 and 3,520 ringgit."

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange inched up 0.1 percent to close at 3,505 ringgit ($1,151) per tonne.

Traded volumes were thin at 21,059 lots of 25 tonnes each, compared to the usual 25,000 lots.

Malaysian palm oil exports for the first 25 days of the month recovered compared to April 1-20, although the numbers were still lower than a month ago.

Traders attributed the improvement to stronger demand from major food buyers China and India as well as the biodiesel industry in Europe, with the focus now shifting to full-month export numbers due on Monday. [PALM/ITS][PALM/SGS]

One of Argentina's biggest grains exchanges cut another million tonnes off its 2011/12 soy crop forecasts on Thursday, citing poor yields, adding to bullishness supporting palm oil prices. [ID:nL2E8FQ95V]

But investor enthusiasm was tempered after Standard & Poor's lowered its credit rating on Spain by two notches to BBB-plus on Thursday, raising new fears about the lingering euro zone debt crisis.[ID:nL2E8FQLDM]

Palm oil will likely head towards 3,397 ringgit after testing support at 3,439 ringgit per tonne, said Reuters market analyst Wang Tao. [ID:nL3E8FQ29B]

REGIONAL EQUITY- BANGKOK, April 27 (Reuters) - Indonesian shares fell on Friday as investors sold banks on concerns about new bank ownership rules while other markets in the region reversed early gains to end lower amid euro zone debt concerns.

Indonesia's benchmark stock index <.JKSE> ended down 0.39 percent, led by a 1.67 percent drop in the Jakarta Finance Index <.JKFINA>.

Shares in Bank Danamon Indonesia Tbk tumbled 6.4 percent after Indonesia's central bank said it would issue new bank ownership rules next month and then review plans by

Singapore's DBS Group to acquire Indonesia's sixth-largest lender.

The Philippine index <.PSI> fell nearly 1 percent, erasing Thursday's 0.7 percent gain to an all-time high.

Trader's Highlight

DJI- NEW YORK, April 26 (Reuters) - U.S. stocks rose for a third day on Thursday after upbeat housing data and stronger-than-expected results from companies, including Citrix Systems Inc , overshadowed some high-profile earnings misses.

An index of pending home sales rose to nearly a two-year high in March, sending the Philadelphia Stock Exchange index of housing-related shares <.HGX> up 3 percent. Shares of homebuilder Lennar climbed 5.7 percent to $27.38.

During the regular session, the positive news on the housing front helped the market overcome data showing a stumbling labor market recovery. Initial claims for jobless benefits fell slightly in the latest week, but missed forecasts. [ID:nL2E8FQ37P]

"You can get cautious right here, but do not get bearish. There are too many good things happening," said Jeffrey Saut, chief investment strategist of Raymond James Financial in St. Petersburg, Florida.

The Dow Jones industrial average <.DJI> rose 113.90 points, or 0.87 percent, to close at 13,204.62. The Standard & Poor's 500 Index <.SPX> advanced 9.29 points, or 0.67 percent, to 1,399.98. The Nasdaq Composite Index <.IXIC> gained 20.98 points, or 0.69 percent, to 3,050.61.

Wednesday's rally helped to purge a lot of April's losses brought on by investors' worries over prospects for a seasonally weak market in May as well as signs that Europe's debt crisis was getting worse.

 

NYMEX- NEW YORK, April 26 (Reuters) - U.S. crude futures rose on Thursday as upbeat March pending home sales added to optimism about the outlook for energy demand.

The pending home sales report offset disappointing U.S. jobless claims data and helped counter the bearish effect of a crude inventory rise in the United States reported by the Energy Information Administration on Wednesday. [EIA/S]

* On the New York Mercantile Exchange, June crude rose 43 cents, or 0.41 percent, to settle at $104.55 a barrel, having traded from $103.84 to $104.92. That intraday peak was near the 50-day moving average of $105.06.

* Five North Sea Forties crude oil cargoes loading in May have been delayed after a production halt at Nexen's Buzzard oilfield, a trading source said on Thursday. The source said that Buzzard, which shut down over the weekend, was ramping up on Thursday after being restarted on Wednesday. [ID:nL9E8CA00X]

* Seaborne oil exports from OPEC, excluding Angola and Ecuador, will fall by 20,000 barrels per day in the four weeks to May 12, UK consultancy Oil Movements said. [ID:nL6E8FQDD8]

* A Russian diplomat said on Wednesday that Iran and Western nations had shown interest in a Russian proposal aimed to help defuse the standoff over Tehran's nuclear program, but suggested it had not been the focus of talks earlier this month. [ID:nL6E8FQ4BM]

* South Korea will make sharp cuts in imports of Iranian crude from June as tightening Western sanctions make it impossible to secure insurance coverage for tankers, industry and company sources said. [ID:nL3E8FQ5HU]

* The Chicago Board Options Exchange's Oil Volatility Index <.OVX> fell to its lowest level in nearly five years intraday on Thursday, dropping below 25. [ID:nL2E8FQ4BO]

* Oil will be supported by Iranian tensions even as top producers pump at near full capacity, though the second quarter looks set for traditional seasonal price weakening, a Reuters poll showed. [O/POLL]

CBOT SOYBEAN- Chicago Board of Trade soybean futures closed higher in the old-crop months on big export sales to China and waning crop prospects in South America.

Spot May gained nearly 20 cents per bushel premium on new-crop November on bull-spreading as traders bought old-crop contracts such as May SK2 and sold new-crop months such as November SX2.

USDA's weekly export sales report showed that net export sales of U.S. soybeans during the week ended last Thursday totaled 1,409,300 tonnes, above a range of estimates for 900,000 to 1,250,000 tonnes. [nEAP10AQ04] The USDA export sales highlights showed that old-crop sales to China totaled 603,800 tonnes and new-crop sales to China totaled 185,700 tonnes. [nIGB26E228]

Occasional bouts of rainfall in the Midwest over the next two weeks will slow the corn and soybean seeding pace but no major problems are expected, according to Commodity Weather Group. CWG also said frosty weather expected in the northern and eastern Midwest over the weekend would cause only minor damage to crops.

The Taiwan Sugar Corp. Has rejected all offers and made no purchase in a tender to buy 23,000 tonnes of U.S. origin corn and 12,000 tonnes of U.S. origin soybeans which closed on Thursday, European traders said. [nL6E8FQ3Q2]

Malaysian palm oil futures slipped on Thursday as global economic uncertainty and expectations of improving production weighed on the market, although recovering exports and a smaller soybean crop in Argentina limited losses. [nL3E8FQ32H] May was above all key moving averages and the nine-day RSI was at 73.

FCPO-SINGAPORE, April 26 (Reuters) - Malaysian palm oil futures slipped on Thursday as global economic uncertainty and expectations of improving production weighed on the market, although recovering exports and a smaller soybean crop in Argentina limited losses.

Despite the Federal Reserve's assurance that its very easy monetary policy will be kept in place for as long as needed, investors remained sceptical, worrying that the lingering euro zone debt crisis could slow growth and dampen demand.

"The underlying fundamentals still look quite good. Market is down as traders expect production should pick up in the month ahead. Another thing is economic concerns may be eating into demand," said James Ratnam, an analyst with TA Securities in Malaysia.

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to close at 3,500 ringgit ($1,146) per tonne.

Traded volumes stood at 29,661 lots of 25 tonnes each, higher than the usual 25,000 lots.

Malaysian palm oil exports for the first 25 days of the month dropped a slight 2 and 3 percent, according to cargo surveyors Societe Generale de Surveillance and Intertek Testing Services respectively. [PALM/ITS][PALM/SGS]

Despite the fall, market players see the numbers as an improvement compared to the 5 percent decline seen in the first 20 days of the month. Traders said that demand from major food buyers China and India has been picking up, contributing to stronger buying interest in the edible oil.

Shipments to Europe were also higher compared to a month ago as demand from the biodiesel industry returned after winter.

Hamburg-based oilseeds analyst Oil World this week cut its forecast for Argentina's 2012 soy output to 42.5 million tonnes, reinforcing views of a tight global oilseed supply. [ID:nL5E8FN7X0]

Reuters market analyst Wang Tao had a bearish view, saying palm oil will clear a support at 3,439 ringgit per tonne and fall further to 3,395 ringgit. [ID:nL3E8FQ29B]

REGIONAL EQUITY- BANGKOK, April 26 (Reuters) - Southeast Asian stock markets ended mostly higher on Thursday, with Philippine shares climbing to fresh all-time highs and Thai stocks hitting their highest in more than three weeks on optimism fuelled by the U.S. Federal

Reserve's commitment to support growth. Fund flows appeared favourable, with the Philippines <.PSI> posting $16.5 million worth of foreign buying, Thomson Reuters data showed. Malaysian bourse said foreign investors bought shares for 138.70 million ringgit ($45.35 million).

Trader's Highlight

DJI- NEW YORK, April 25 (Reuters) - U.S. stocks rallied on Wednesday, with Apple's surge giving the Nasdaq its biggest gain of the year, while the Fed chairman reassured markets that the central bank would do more if necessary to lift the economy.

Apple Inc fueled optimism that the current earnings season would be much stronger than expected, generating gains across all market sectors. The iPad and iPhone maker's results, released after Tuesday's closing bell, showed that its quarterly

profits nearly doubled, while its revenue easily topped expectations. The rally in Apple's stock especially benefited the S&P 500 tech sector index <.GSPT>, which jumped 3.2 percent. Federal Reserve Chairman Ben Bernanke spurred further gains when he said the U.S. central bank "would not hesitate" to launch another round of bond purchases to drive borrowing costs lower if it looked like the economy needed it. [ID:nL2E8FOJAC]

The Dow Jones industrial average <.DJI> shot up 89.16 points, or 0.69 percent, to 13,090.72 at the close. The Standard & Poor's 500 Index <.SPX> rose 18.72 points, or 1.36 percent, to 1,390.69. The Nasdaq Composite Index <.IXIC> jumped 68.03 points, or 2.30 percent, to 3,029.63, and scored its best daily percentage gain since Dec. 20.

During the regular session, Bernanke's comments came as a welcome surprise to some stock investors.

"People looked at the FOMC statement and saw no mention of QE3, but in his press conference, Bernanke made it quite clear that additional asset purchases remain completely on the table. That may have been a revelation to some of the earlier sellers," said William O'Donnell, managing director and head of U.S. Treasury strategy at RBS Securities in Stamford, Connecticut.

NYMEX- NEW YORK, April 25 (Reuters) - U.S. crude futures rose on Wednesday after a tug-of-war session, receiving a late lift from Wall Street's rally, the Federal Reserve reiterating its low interest rate policy, and falling refined products stocks that offset rising crude inventories.

Oil futures received pressure intraday from Energy Information Administration data showing U.S. crude stocks rose 3.98 million barrels last week, more than expected and counter to an industry report on Tuesday that showing an inventory drop.[EIA/S] [API/S]

* On the New York Mercantile Exchange, June crude rose 57 cents, or 0.55 percent, to settle at $104.12 a barrel, having traded from $103.11 to $104.57.

* Four cargoes of North Sea Forties crude loading in May have been delayed after production problems at Britain's largest oilfield, trade sources said. Nexen said its 200,000-barrel per day Buzzard field, shut down after a problem with a gas compressor on its newest platform over the weekend was restarting after repairs. [ID:nL6E8FP2ON]

* Russia will continue its abundant Urals crude exports in May, a preliminary export schedule showed. [ID:nL6E8FP2HX]

* Production at Iraq's West Qurna Phase-2 oilfield was expected to hit 500,000 bpd in 2014, Iraq's oil minister said as drilling of the first oil well began. [ID:nL6E8FP39J]

* Goldman Sachs maintained its near-term neutral recommendation on the commodities complex as a whole on renewed euro zone debt concerns and a modest slowing in U.S. growth, despite signs of China beginning to pick up after a policy induced slowdown late last year. [ID:nL3E8FP3KA]

* Demand U.S. durable manufactured goods tumbled by the most in three years in March and businesses cut back on spending plans. [ID:nL2E8FP2GL]

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade closed higher on concerns about the size of South America's soy harvest and positioning ahead of a three-day U.S. holiday weekend, traders said.

* U.S. grain markets will be closed on Friday for the Good Friday holiday.

* Strong weekly U.S. export sales added support. USDA reported export sales of U.S. soybeans in the latest week at 1,112,900 tonnes (old and new crop years combined), above a range of trade estimates for 600,000 to 850,000 tonnes. [ID:nEAP10A504]

* Front-month soybeans reached $14.34-1/4, matching Tuesday's seven-month high on the continuous chart. Soybeans unofficially ended the week up 2.08 percent, the second straight weekly rise.

* Nearby soybean contracts gained against back months as traders appeared to unwind long November/short May and long November/short July spreads.

* The USDA's attache in Brazil projected the country's 2011/12 soybean harvest at 66 million tonnes, down from USDA's last forecast of 68.5 million. Attache reports are not official data but can signal what USDA might do in its next official monthly report, due out next week. [ID:nL2E8F49YR]

* Analysts surveyed by Reuters expect USDA in its April 10 supply/demand reports to lower its forecast of U.S. 2011/12 soybean ending stocks, as well as its estimates of the 2011/12 soy harvests in Brazil and Argentina. [ID:nL2E8F4A2E]

* Tugboats in Argentina's main grains export route dislodged a boat carrying soymeal that ran aground three days ago, delaying at least 85 ships, a shipping industry group said. [ID:nL2E8F54ST]

FCPO- SINGAPORE, April 25 (Reuters) - Malaysian palm oil futures ended higher on Wednesday, as buying interest poured in after the midday break on bullish factors including recovering exports and tight soybean supply.

Another sign of improving demand is the smaller fall of three percent in Malaysian palm oil exports for the first 25 days of the month, versus a decline of 5 percent for the period April 1-20. [PALM/ITS]

Tight soybean supply in drought-hit South America remains a key bullish factor for palm oil. On Tuesday, Hamburg-based oilseeds analyst Oil World has again cut its forecast for Argentina's 2012 soybean crop, this time by 1.5 million tonnes. [ID:nL5E8FN7X0]

"The market ends higher on its failure to crack support levels and there is a lack of producers selling," a trader with a domestic commodities brokerage in Malaysia said. "There is also anticipation of stronger soybean and beanoil prices in the CBOT on the Argentine weather and Chinese demand."

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange closed up 1.4 percent at 3,511 ringgit ($1,148) per tonne.

Traded volumes stood at 22,353 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

Traders attributed the improvement in Malaysian palm oil exports to higher demand from major buyers such as India and China. Another cargo surveyor, Societe Generale de Surveillance, reported a similar 2 percent decline in palm oil exports for April 1-25 from a month ago. [PALM/SGS]

Despite the slight recovery in exports, some traders said shipments for April were still likely to be lower than a month ago.

"April 1-25 exports are still down by 3 percent, so in the next five days how much more can be shipped (to reverse the trend)? Really not much," said a trader at a commodities house in Singapore.

REGIONAL EQUITY-BANGKOK, April 25 (Reuters) - Most Southeast Asian stock markets posted modest gains on Wednesday as investors selectively bought beaten-down blue chips late in the session but markets remained cautious ahead of results from a U.S. Federal Reserve policy meeting.

The Philippine index <.PSI> edged up 0.7 percent, climbing at one point to an intraday record high of 5,226.54.

Thailand's benchmark SET index <.SETI> ended up 0.13 percent, with gains limited by thin trading volume. It hit a three-week high of 1,204.73 in early trade.

RTRS- U.S. farmers made good planting- USDA

CHICAGO, April 23 (Reuters) - U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.

The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.

The planting pace was the third fastest ever for this time of year but the wet fields have pushed farmers behind the record pace they established in early April.

Soybean planting was a record 6 percent finished, up from 2 percent a year ago, ahead of the five-year average of 2 percent. That pace beat analysts' expectations.

USDA released a soybean planting estimate as early as the third week in April just once before, in 2007. The department calculated year-ago figures and the five-year average from data it collected but had not released before Monday.

Analysts expected corn planting at 31 percent, based on the average of 17 crop watchers surveyed in a Reuters poll, and had pegged soybean planting at 4 percent complete.

RTRS- Brazil soy crop sales, harvest - Celeres

SAO PAULO, April 23 (Reuters) - Sales of Brazil's 2011/12 soybean crop rose to 75 percent of the total expected production of 67.9 million tonnes, up from 72 percent a week earlier, analysts Celeres said on Monday.

Harvest is days from ending across the main soy belt, where rain has been less than optimal this year and will keep the world's No. 2 soybean producer at least 7 million tonnes shy of last year's record harvest of 75 million tonnes.

Celeres said harvest has reached 93 percent of the crop area by April 20, up from 88 percent in the week prior. Last year at this time, 91 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 are finished with harvest.

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, April 23 (Reuters) - U.S. stocks fell on Monday as political turmoil in Europe cast doubts on the euro zone's ability to push through measures to end its debt crisis and as Wal-Mart sank following a report it stymied a bribery probe.

The Dutch prime minister tendered his government's resignation on Monday after Dutch officials failed to agree on budget cuts. Adding to the uncertainty was a Sunday vote in France that threw the presidential race wide open. [ID:nL5E8FN1WN] [ID:nL5E8FM30Q]

The renewed worries came as the euro zone's business slump deepened at a far faster pace than expected in April. [ID:nL3E8FN7JT] The Markit PMI fell to a five-month low, confounding forecasts for a rise. Europe's debt crisis has been a major headwind for U.S. equities as investors worried it could hurt corporate profits. Bank shares were hit by the concern, including Morgan Stanley , which fell 2.9 percent to $16.98. The KBW bank index <.BKX> fell 0.6 percent.

"It's becoming clear the euro zone is in a recession, and that brings a lot of concerns. To really get out of the debt problem, you need growth, and we haven't gotten to that step yet,"sai d Hank Smith, chief investment officer at Haverford Trust Co. in Philadelphia.

Wal-Mart Stores Inc slumped 4.7 percent to $59.54 and was the biggest drag on the Dow after the New York Times reported Wal-Mart officials stymied an internal investigation into bribery allegations at its Mexican unit, Walmart de Mexico . Those shares dropped 12 percent to 37.82 pesos.

The sell-off was broad with almost 3 stocks on the New York Stock Exchange falling for each one that rose, and the economically sensitive S&P materials sector <.GSPM> was among the worst performing areas, down 1.4 percent.

The Dow Jones industrial average <.DJI> was down 102.09 points, or 0.78 percent, at 12,927.17. The Standard & Poor's 500 Index <.SPX> was down 11.59 points, or 0.84 percent, at 1,366.94. The Nasdaq Composite Index <.IXIC> was down 30.00 points, or 1.00 percent, at 2,970.45.

NYMEX- NEW YORK, April 23 (Reuters) - U.S. crude futures fell on Monday on pressure from revived concerns about the euro zone economy and political uncertainty, while a North Sea production problem and worries about Iran and potential supply disruptions helped limit losses.

Politics added uncertainty after the Socialist challenger edged out French President Nicolas Sarkozy, leaving the two to fight a May 6 election run-off, while the Dutch government was set to resign in a crisis over budget cuts. [ID:nL5E8FN040] [ID:nL5E8FM3ER]

Crude futures' losses, especially for Brent crude, were limited by news that production stopped at the North Sea Buzzard oil field, Britain's largest, following a problem with a gas compressor over the weekend.

Output is expected to "ramp up" over the next 24-48 hours according to a spokeswoman for operator Nexen . [ID:nL5E8FN8R0]

Oil markets continued to be buffeted by competing concerns about slowing economic growth and potential for supply disruptions following the sharp price rise in the first quarter as U.S. and European tightened sanctions on Iran aimed at curbing its nuclear program by limiting oil exports and revenues.

* On the New York Mercantile Exchange, June crude fell 77 cents, or 0.74 percent, to settle at $103.11 a barrel, having traded from $101.82 to $103.98.

* China's March crude oil imports from Iran fell 54.1 percent from a year earlier to 253,302 barrels per day, customs data showed, due to pricing disputes over term contracts, with Beijing boosting shipments from elsewhere to fill the gap. [ID:nL3E8FN5SJ]

* Sunoco Inc announced exclusive talks with private equity firm Carlyle Group LP on a potential joint venture to run the biggest refinery on the U.S. East Coast, saying it would delay a planned closure of the Philadelphia plant by a month. [ID:nL2E8FN1M7]

* Greece's ruling partners, the only two major parties that back the EU/IMF bailout plan, could gather just enough votes to form a coalition government, the last polls to be published before the election on May 6 showed. [ID:nL6E8FKHDF]

* Leading world economies on Friday pledged $430 billion in new funding for the International Monetary Fund, more than doubling its lending power in a bid to protect the global economy from the euro-zone debt crisis. [ID:nL2E8FK0TS]

SOYBEAN CBOT- Chicago Board of Trade soybean futures fell on profit-taking and long liquidation after a 2 percent rally on Friday.

* Spillover weakness from U.S. crude oil futures added pressure.

* Robust export demand for U.S. soybeans and concerns about the size of South America's soy harvest continue to underpin the market. USDA confirmed sales of 165,000 tonnes of U.S. soybeans to an unknown destination for 2011/12 delivery.

* However, USDA reported export inspections of U.S. soybeans in the latest week at 12.005 million bushels, well below trade expectations for 21 million to 24 million bushels.

* Large speculators boosted their net long position in CBOT soybeans to a record 209,907 contracts as of last Tuesday, CFTC data showed, leaving the market vulnerable to long liquidation. [ID:nL2E8FKBQ0]

* A Reuters poll of 10 analysts indicated the USDA on Monday would show U.S. 2012 soybean planting at a record 4 percent complete. USDA has only released its estimate of soybean planting for the third week in April once before, in 2007. [nL2E8FN4FE]

* Dry weather this week in the Midwest should allow rapid corn and soybean planting followed by rainfall by the weekend and a potential cold snap.

* Analysts at Celeres said Brazil's soybean harvest reached 93 percent of the crop area as of April 20, up from 88 percent a week earlier. Sales rose to 75 percent of the total expected

production, from 72 percent the prior week. [ID:nL2E8FN73P]

* Trade expects Statistics Canada to project record-large canola seedings in its planting intentions report on Tuesday. The average estimate for Canadian canola seedings among analysts surveyed by Reuters was 20.6 million acres. [ID:nL2E8FDASE]

FCPO- KUALA LUMPUR, April 23 (Reuters) - Malaysian palm oil fell on Monday after a slew of European indicators signaled a faster rate of economic contraction and limited hopes for a strong recovery in growth.

Losses, however, were limited by expectations that big food consumers will lift demand for the tropical oil in the wake of higher soyoil prices after droughts crimped South America's soy crop.

The palm oil market has gained more than 9 percent this year on strong food demand, lower stocks in No.2 producer Malaysia and weaker global edible oil production after a drought hurt South American soy crops.

"The purchasing managers' indexes for the euro zone were rather dismal and that triggered a knee-jerk reaction in financial markets. Palm oil was not spared because some dealers wanted to book some profits," said a trader with a foreign commodities brokerage.

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange dropped 0.7 percent to close at 3,475 ringgit ($1,133) per tonne.

Traded volumes stood at 26,086 lots of 25 tonnes each, a tad higher than the usual 25,000 lots.

Although weaker Purchasing Manager Indexes for Germany, France and the euro zone has dampened hopes for a strong global economic recovery, some traders were focusing on tighter edible oil supplies that may be inadequate to sate food demand.

Argentina cut its official estimate for this year's soy crop last Thursday, and many traders expect the U.S. Agriculture

Department to slash its own estimates in its supply-and-demand report due early next month.

Argentina's Agriculture Ministry has pegged the soy crop at 42.9 million tonnes, compared to the latest USDA estimate of 45 million tonnes. A reduced soy crop for crushing into soyoil will tip demand over to palm oil. [ID:nL2E8FJBMW]

As a result, Malaysian palm oil exports for April 1-20 fell 5.3 percent from a month earlier, a marked improvement from a 13.5 percent drop in the first 15 days of this month due in part to stronger demand from India.

REGIONAL EQUITY- April 23 (Reuters) - Most Southeast Asian markets extended losses on Monday for a third day running on renewed worries over the euro zone debt crisis and further signs of weakness in European economies.

Singapore <.FTSTI> fell 1.1 percent to a near two-week low in thin trade and Thailand <.SETI> eased 0.4 percent from a two-week high, led by energy shares.

Indonesia <.JKSE> ended down 0.6 percent at a one-week low in heavy volume, with $7.2 million of foreign outflows, after credit rating agency Standard and Poor's said it was not prepared to upgrade the country's sovereign rating to investment grade status, as had been widely expected.

S&P maintained its positive outlook on the rating, but said it was concerned by signs of "policy slippages". [ID:nL3E8FN279]

Despite $28.6 million of foreign inflows, Malaysia <.KLSE> fell 0.5 percent to its lowest since March 26, while Vietnam <.VNI> edged down 0.1 percent in light volume.

Bucking the trend, the Philippines <.PSI> inched up 0.1 percent in improved volume compared to the market's 30-day average volume.

Regional markets reacted positively to a survey that showed China's factory activity was stabilising, but were hit by late selling as European markets and U.S. stock futures fell.

RTRS- Brazil gov't says not halting, slowing soy exports

BRASILIA, April 20 (Reuters) - Brazil's government has no plans to either halt or slow exports of soy, its single most valuable agricultural export, the agriculture ministry said on Friday after such rumors sent Chicago soy futures to a 7-1/2 month high.

The grains market was abuzz with talk that this year's smaller soy harvest in Brazil, which was shrunk by a long spell of drought, had prompted the world's No. 2 soy producer to impose an export ban or restriction.

"Absolutely not. The government didn't take any decision which would restrict soy exports," Benedito rosa, director of commercial affairs at the Agriculture Ministry said.

The head of the National Association of Grains exporters, Anec, Sergio Mendes, told Reuters it was an unfounded rumor and that Brazil continued seeking to maximize its shipments of the oilseed.

Trader's Highlight

DJI- NEW YORK, April 20 (Reuters) - U.S. stocks mostly rose on Friday, led by solid earnings from McDonald's, General Electric and Microsoft, but declines in banks and technology shares pulled indexes from their day's highs.

The Nasdaq Composite fell as SanDisk Corp led a drop in semiconductor shares with an 11.3 percent slide after its second revenue warning in as many quarters.

Apple Inc's more than 2.4 percent fall also weighed, as shares continue to struggle ahead of earnings next week. Apple shares posted back-to-back weekly declines of more than 4 percent for the first time since late December 2008.

As earnings season moves into high gear, the first wave of corporate results has been substantially stronger than expected. About 81 percent of S&P 500 companies that have reported so far have beat expectations, according to Thomson Reuters data.

The impressive rate of beats comes amid lowered expectations, but the earnings have helped stocks regain their footing after a recent pullback on less-than-inspiring U.S. economic figures and renewed worry about Europe's debt crisis.

Analysts said the weakness heading into Friday's close was in part because of caution ahead of an early indicator of China's industrial activity, expected late Sunday.

The Dow Jones industrial average <.DJI> rose 65.16 points, or 0.50 percent, to 13,029.26. The S&P 500 Index <.SPX> gained 1.61 points, or 0.12 percent, to 1,378.53. The Nasdaq Composite <.IXIC> dropped 7.11 points, or 0.24 percent, to 3,000.45.

For the week, the Dow gained 1.4 percent, the S&P 500 added 0.6 percent and the Nasdaq fell 0.4 percent, down for a third week running.

NYMEX-NEW YORK, April 20 (Reuters) - U.S. crude futures rose for the first time in three days on Friday, lifted by better-than-expected data on German business sentiment that helped ease worries about the euro zone debt crisis and improve the outlook for oil demand.

Front-month May crude futures expired and their successor, June , gained more than 1 percent, heading towards $104. Volumes were light.

* On the New York Mercantile Exchange, crude for May delivery expired and settled at $103.05 a barrel, gaining 78 cents, or 0.76 percent. For the week, it edged up 22 cents, or 0.21 percent, after a loss of 48 cents, at $102.83, in the week to April 13.

* NYMEX June crude closed at $103.88, up $1.16, or 1.13 percent, trading between $102.86 and $104.68.

* German business sentiment unexpectedly rose for the sixth consecutive month in April, data from the Ifo think tank showed. Ifo's business climate index, based on a poll of 7,000 companies, inched up to 109.9 from March's 109.8 and marked the highest level since July 2011. [ID:nL6E8FK2L6]

* Iran is exporting 2.1 million barrels per day of crude oil, compared to an average of 2.3 million bpd in the last Iranian year ended March 19, Platts quoted Iranian oil officials as saying. [ID:nL6E8FK51W]

* European Union member governments could review in the next two months an embargo on Iranian oil imports due to take effect in July, a senior EU official said. [ID:nB5E8EK02J]

 

CBOT SOYBEAN- Soybean futures at the Chicago Board of Trade soared more than 2 percent and set a 7-1/2-month high as worries that South America's soy harvest was shrinking sparked technical buying, traders said.

The market surged to its highest spot price since Aug. 31, 2011, in the closing seconds of trade. Nearby contracts led deferreds on ideas that crop losses in South America would steer near-term export demand to the United States. Talk of poor yields in the ongoing

Argentine soybean harvest raised concerns that USDA in its next monthly report would again lower its Argentine soy crop forecast from its current 45 million tonnes. The Argentine government on Thursday cut its soybean production estimate to 42.9 million tonnes, from 44 million previously. Rumors of fresh sales of U.S. soybeans to China added support. The late-day surge helped CBOT soybeans to finish the week about 1 percent higher, the market's fourth straight weekly rise. CBOT May options expired at the close on Friday.

FCPO- SINGAPORE, April 20 (Reuters) - Malaysian palm oil futures reversed earlier losses to end higher on Friday on last minute buying, although traders remained wary over the weak global economy and slowing export data.

Buying surged in the last half hour of trading and sometraders said this was due to the weak performance this week that prompted investors to close out their short positions to book profits.

Despite closing higher on Friday, palm oil still recorded a slight 0.3 percent weekly loss as investors were held back by disappointing jobless U.S. data, while worries about the euro zone persisted despite a better-than-expected Spanish bond auction. [ID:nL2E8FJ25I]

"The buying came in the last half an hour (of trading), we saw an obvious trend that market will close higher, and all of us were a bit apprehensive of selling," said a trader with a foreign commodities brokerage in Malaysia.

Tight soybean supply in drought-hit South America remained a bullish factor for palm oil. On Thursday, Argentina's government cut its soy production estimates to more than 10 percent below last year's harvest levels. [ID:nL2E8FJBMW]

On the demand side, cargo surveyor Intertek Testing Services said exports for April 1-20 fell 5.6 percent to 844,453 tonnes, in which exports for by-products such as refined palm stearin and palm fatty acid distillate were observably lower than a month ago. [PALM/ITS]

Another cargo surveyor Societe Generale de Surveillance reported a similar 5.3 percent fall in exports for the same period from a month ago. [PALM/SGS]

REGIONAL EQUITY- April 20 (Reuters) - Most Southeast Asian markets fell on Friday after disappointing U.S. data stirred doubts about the strength of its economic recovery, and on renewed concerns over the euro zone debt crisis.

Singapore <.FTSTI> ended 0.5 percent lower, falling from a two-week high in thin trade, while Malaysia <.KLSE> fell 0.3 percent to a three-week low despite $14.19 million of inflows.

The Philippines <.PSI> and Vietnam fell 0.3 percent each.

Bucking the trend, Thailand <.SETI> gained 0.8 percent to its highest since April 4, led by information and technology shares.

Indonesia <.JKSE> rose 0.4 percent to its highest since April 3, with $16.7 million of inflows. Trade was heavy, with top lender Bank Mandiri gaining 1.4 percent.

Trader's Highlight

DJI- NEW YORK, April 19 (Reuters) - Global stocks fell and government debt prices rose on Thursday after a Spanish debt auction failed to allay fears that Spain could be the next European country in need of a bailout and as U.S. economic data cast doubt on the strength of the recovery.

The number of Americans claiming unemployment benefits for the first time fell less than expected last week, suggesting a slowdown in job creation. Other data showed factory activity in the Mid-Atlantic region slowed sharply this month and U.S. home resales fell for a second month in March. [ID:nL2E8FJ25I]

Analysts said part of the data's weakness was payback after an abnormally warm U.S. winter. But few doubted the economy was losing some steam, leaving the door open for further monetary stimulus from the Federal Reserve, a bullish sign for bonds.

"The prospects for easing are on the table and are always going to be on the table," said Sean Incremona, economist at 4CAST LTD in New York. "Euro zone worries, U.S. economy worries - it doesn't look like it's going to be a risk-on day."

Closely watched auctions of French and Spanish debt aided safe-haven assets like Treasuries and German bunds.

Equities in both New York and Europe fell on the economic data. Investors in Europe have increasingly been looking to the United States, as well as emerging markets, to drive European corporate profits while the euro zone economy languishes.

Demand for safe-haven government debt could ease if a meeting this weekend of the International Monetary Fund supports the idea of buffering the so-called peripheral European economies, said John Hendricks, a portfolio manager at Hartford Investment Management in Hartford, Connecticut.

IMF chief Christine Lagarde said on Thursday she expects to win a big boost in funding to help the lender safeguard countries from the euro zone debt crisis. [ID:nL2E8FJ3I3]

"Clearly, the bond market is very focused on headlines out of Europe right now," Hendricks said.

"We're in a very volatile rate environment and we bounce from one headline to the next."

The Dow Jones industrial average <.DJI> ended down 68.65 points, or 0.53 percent, at 12,964.10. The Standard & Poor's 500 Index <.SPX> lost 8.22 points, or 0.59 percent, at 1,376.92. The Nasdaq Composite Index <.IXIC> fell 23.89 points, or 0.79 percent, at 3,007.56.

NYMEX - NEW YORK, April 19 (Reuters) - U.S. crude futures fell a second day on Thursday in tug-of-war trading as weak economic data and slumping gasoline futures helped pressure crude prices.

Front-month Brent crude for June delivery managed a 3-cent gain, as the weak U.S. data helped pull Brent prices back from an early peak, reached when strong investor demand for Spanish debt eased worries about the euro-zone economy.

U.S. initial jobless claims fell only slightly last week, from a revised higher number the previous week, indicating that April job growth may not show much improvement after March's disappointing performance. [ID:nL2E8FJ25I]

* On the New York Mercantile Exchange, May crude fell 40 cents, or 0.39 percent, to settle at $102.27 a barrel, having traded from $101.67 to $103.21. The intraday low was below the 100-day moving average of $101.92. The May contract expires on Friday.

* Saudi Arabia is offering extra crude supplies to some of its existing customers, industry sources said, probably because it has more available while its own refineries are undergoing
maintenance. [ID:nL6E8FJA8L]

* A slowly improving U.S. jobs market and reasonably solid growth at the start of the year have brightened the economic outlook for 2012, reducing chances the Federal Reserve will
conduct another round of bond purchases, a Reuters poll found. [ID:nL3E8FH8X0]

* Mismanagement and theft by top Nigerian officials involved in a corrupt fuel subsidy scheme cost the country $6.8 billion in three years, a parliamentary probe found, calling on President Goodluck Jonathan to overhaul the state oil firm and ministry. [ID:nL6E8FJCSL]

* Weekly stockpiles of fuel oil in Europe's main oil trading hub of Amsterdam-Rotterdam-Antwerp fell by 24 percent over the past week, according to data from independent oil analyst
Patrick Kulsen. Stockpiles of gasoline and gasoil fell while naphtha and jet rose. [ID:nL6E8FJE2N]

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade ended higher on stronger-than-expected weekly export sales, plus news of fresh U.S. sales to China in the last day, traders said.

However, the market pared gains and briefly turned lower within the last 30 minutes of the session as traders liquidated long outright positions and long soybean/short corn spreads. Open
interest in CBOT soybean futures set a record high this week above 800,000 contracts and funds hold a record-large net long position, leaving the market vulnerable to long liquidation.

Soy market remains underpinned by outlooks for tightening global soy supplies following drought in South America. Argentina's government cut its production estimate for the country's 2011/12 soybean production to 42.9 million tonnes, from 44 million previously, the Agriculture Ministry said in a monthly crop report. USDA confirmed sales within the last day of 110,000
tonnes of U.S. soybeans to China for delivery in 2011/12. USDA reported export sales of U.S. soybeans in the latest week at 1.219 million tonnes (old and new-crop years combined), above a
range of trade expectations for 850,000 to 1.1 million. Sales to China included 127,200 tonnes for 2011/12 and 615,000 for 2012/13. USDA showed export sales of U.S. soymeal in the latest
week at 302,200 tonnes and soyoil sales at 23,900 tonnes, both above trade expectations.

A consortium of Israeli private buyers bought about 22,000 tonnes of U.S. corn products and 20,000 tonnes of U.S. soymeal in a tender - European traders.

FCPO- SINGAPORE, April 19 (Reuters) - Malaysian palm oil futures closed slightly lower on Thursday, recouping most of their losses after Spain sold as many bonds as it wanted, which helped calm fears about the euro zone economy but concerns about slowing demand kept prices lower.

Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.1 percent to close at 3,477 ringgit ($1,136) per tonne after falling during the session to 3,439 ringgit, its lowest level since March 30.

Traded volumes stood at 34,170 lots of 25 tonnes each, higher than the usual 25,000 lots.

Market players are now keeping a close watch on export data for April 1-20 due to be released on Friday for more signs about the demand trend.[PALM/ITS][PALM/SGS]

Palm oil touched a 13-month high at 3,628 ringgit last week, and traders said it was now going through a price correction as most of the bullish factors, including 7-month low palm oil stocks, have been priced in.

"I think the sentiment now has changed a bit. When the market hit above 3,600 ringgit, everybody was asking for a healthy correction. So now the immediate target is at about 3,400 ringgit," said a trader with a foreign commodities brokerage in Malaysia.

Thursday's bond auctions by Spain and France are key to investor confidence in Europe's ability to tackle growing economic and fiscal problems. Spain managed to sell the 2.5 billion euros ($3.3 billion) of bonds it wanted to, but at higher yields. [ID:nL6E8FJ120]

Tight soybean supply in drought-hit South America remained a bullish factor for palm oil and traders said that any signs that the supply situation is worsening could be supportive for palm
oil futures.

A bearish target of 3,402 ringgit per tonne remains unchanged for palm oil, however, provided it does not suddenly jump to 3,520 ringgit, said Reuters market analyst Wang Tao. [ID:nL3E8FJ0XD]

In related news, a Malaysian farmers' investment cooperative voted in favour of a controversial $2 billion listing of a state-linked palm oil firm, a government minister said on Thursday. [ID:nL3E8FJ600]

REGIONAL EQUITY- April 19 (Reuters) - Thai stocks surged to a two-week high on Thursday led by banking shares but most other stock markets in the region ended flat or lower amid renewed concern over the debt crisis in the euro zone.

Foreign inflow of $43.35 million also helped boost sentiment on the Thai bourse with the <.SETI> jumping 1.5 percent to its highest since April 4. Both Siam Commercial Bank PCL and Kasikornbank PCL were among the big gainers.

But stocks in Indonesia, Philippines, Malaysia and Vietnam fell. The Philippines <.PSI>, which hit a record high on Wednesday, edged down 0.3 percent on profit taking, while Indonesia <.JKSE> finished 0.1 percent weaker with a foreign outflow of $12.3 million.

Malaysia <.KLSE> edged down 0.1 percent, but foreign investors bought a net 205.32 million Malaysian ringgit ($66.99 million) worth shares from Kuala Lumpur. Vietnam <.VNI>, the region's smallest market fell 1.1 percent.

But Singapore <.FTSTI> ended 0.3 percent higher to highest level since April 3.