Trader's highlight

DJI - NEW YORK, March 26 (Reuters) - U.S. stocks rallied on Tuesday, with the Dow climbing more than 100 points to another record close and the S&P 500 coming within striking distance of its all-time closing high, as strong data on home prices and manufacturing fed optimism about the economy.

The Dow Jones industrial average initially surpassed its 2007 record closing high on March 5. Since then, the Dow has reached a series of subsequent nominal record highs.

In Tuesday's session, the S&P 500 made yet another attempt at a record, but failed to break above the all-time closing high for the second day this week.

At Tuesday's close, the S&P 500 was only 1.38 points below its lifetime closing high. On Monday, the benchmark index traded just a quarter point below its record closing high, which stands at 1,565.15 set on Oct. 9, 2007, and then retreated as investors sold some equities to cash in on gains in the wake of the news out of Europe.

Data showed U.S. single-family home prices rose in January at the fastest pace in more than six years, while long-lasting U.S. manufactured goods, also known as durable goods orders, shot up in February.

"I think the batch of data was enough to convince investors that the U.S. economy is on the right track," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co, in New York.

"At this point, it's hard to argue that anything will derail the U.S. economy, and that is boosting investors' confidence as they continue to load up on equities."

Still, investors may look for reasons to take profits, with the S&P 500 up nearly 10 percent so far this year. The rally has lifted the benchmark index near its all-time closing high, which it nearly reached on Monday.

The Dow Jones industrial average rose 111.90 points, or 0.77 percent, to end at 14,559.65, a record closing high. The Standard & Poor's 500 Index gained 12.08 points, or 0.78 percent, to finish at 1,563.77. The Nasdaq Composite Index advanced 17.18 points, or 0.53 percent, to close at 3,252.48.

"If there's a run on deposits, there may be a selloff (in U.S. stocks), but that could pose an excellent entry point to get into the market and take advantage of this rally," said Todd Schoenberger, managing partner at LandColt Capital, in New York.

But investors remained concerned about the negative implications of a financial rescue plan for Cyprus. They worried that it would serve as a template for other euro-zone economies requiring bailouts.

Banks in Cyprus will remain closed until Thursday and will then be subject to capital controls to prevent a run on deposits. President Nicos Anastasiades said late on Monday that a 10-billion-euro ($13 billion) rescue plan approved over the weekend was "painful" but essential to avoid economic meltdown. 

Oils - NEW YORK, March 26 (Reuters) - Brent crude rallied late on Tuesday to settle up more than $1 above $109 a barrel, after U.S. crude had surged to a five-week high above $96 a barrel, lifted by stronger manufacturing and housing data in the United States.

Brent's premium to U.S. crude  narrowed to as little as $12.52 a barrel at one point, the smallest in eight months. Brent's late rally moved the spread back to around $13 a barrel.

The spread has narrowed sharply from $23.45 in February. An improving U.S. economy and increased pipeline flows from the Midwest has supported the U.S. benchmark oil contract. Meanwhile, Brent's price has been pressured by increased supplies from the North Sea and concerns about Europe's economy, with Cypriot banks closed until Thursday.

Trading in Brent crude was choppy until the final hour of the session, when prices started to rally, eventually settling up $1.19 at $109.36 a barrel.

Brent has slid from above $119 a barrel in early February, but analysts and traders said market uncertainty may be abating.

U.S. crude settled up $1.53 at $96.34 a barrel, its highest closing price since Feb. 19.

"Brent had been limited by the concerns about Cyprus, but those seemed to give way to allow Brent to move up on the same supportive economic data from the United States," said Phil Flynn, analyst at Price Futures Group in Chicago.

U.S. IMPORTS LESS CRUDE

Surging U.S. crude production over the past two years has widened Brent's premium, as stockpiles have swollen around the U.S. contract's land-locked delivery point in Cushing, Oklahoma.

But increased pipeline capacity is now starting to move more oil from the Midwest to coastal refineries. Producers are also shipping more crude to premium-priced markets via rail cars.

"The erosion (of the U.S. crude premium) is because U.S. shale production is decreasing imports of light sweet crude grades," said Seth Kleinman, head of energy research at Citigroup.

Kleinman said Brent-U.S. crude spread could narrow to $10 per barrel but was unlikely to shrink much further because of the increased cost of moving U.S. oil supplies while the inland infrastructure is still improving.

Data from industry group the American Petroleum Institute late on Tuesday showed U.S. crude oil stocks rose 3.7 million barrels last week, much higher than forecast in a Reuters survey of analysts. Inventories of gasoline and diesel also both fell more than expected.

CBOT Soybean - Soybean futures on the Chicago Board of Trade rose on firm cash markets, technical buying and positioning ahead of key U.S. government stocks and acreage reports due out Thursday, traders said.

·         Port congestion in Brazil added support to nearby soybean  contracts, slowing the movement of a projected record-large Brazilian soy harvest into export channels.

 

·         Soybeans gained against corn on inter-market spreads.

 

·         Buying picked up as the benchmark May soybean contract broke through its 50, 200 and 20-day moving averages.

·         Domestic soy processors firmed their basis bids for  soybeans in some locations due to slow farmer selling. But some  crusher discounted offers for soymeal as demand slowed.

 

·         Global equity markets and other commodities such as crude  oil rose after more data pointed to an improving U.S. economy   and helped offset any fallout from the Cyprus  bailout.

 

·         Ahead of USDA's March 28 planting intentions and quarterly  stocks reports, the average estimate for March 1 soybean stocks  among analysts surveyed by Reuters was 935 million bushels, a  nine-year low, down from 1.374 billion bushels a year earlier.

 

·         Trade expects USDA to project record-large U.S. soybean  plantings for 2013. The average analyst estimate was for 78.394   million acres, which would surpass the 2009 record of 77.451  million. 

 

·         Agroconsult raised its estimate of Brazil's soybean  harvest to 84.4 million tonnes, from 84.2 million earlier this  month. 

 

·         But German analyst Oil World cut its forecast of Brazil's  soy crop to 81.3 million tonnes, from 82.0 million last month.

 

·         Oil World cut its forecast of Argentina's 2013 soybean harvest to 48.5 million tonnes, from 50.0 million previously, citing poor weather. 

BMD CPO - SINGAPORE, March 26 (Reuters) - Malaysian palm oil futures edged lower on Tuesday in rangebound trading amid concerns over lower export demand, while worries about the potential impact of a Cyprus bailout scheme also dented investor appetite for riskier assets.

Cyprus's deal with international lenders to shut down the country's second largest bank in return for 10 billion euros in rescue funds removed the immediate risk of a financial meltdown, but it also stoked fears of similar tough conditions for future bank rescues in the euro zone.

Palm oil came under more pressure as Malaysian exports fell by 7.5 percent for March 1 to 25 compared to a month ago due to a slowdown in crude palm oil shipments.

"The market is stuck and it's looking for further direction. We are looking at 2,400 ringgit for support," said a trader with a local commodities brokerage in Malaysia.

By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 0.8 percent to 2,442 ringgit ($788) per tonne. Prices traded in a tight range from 2,426 to 2,452 ringgit.

Total traded volume stood at 22,264 lots of 25 tonnes each, thinner than the usual 25,000 lots as most investors were waiting for further trading cues.

Market players are counting on seasonally slower production in Malaysia, the world's second-largest palm producer, to bring stocks down this month.

Inventory level stood at 2.44 million tonnes in February with leading analyst Dorab Mistry forecasting a drop below 2 million tonnes in June.

Traders are also looking out for export data for the full month to see if demand is strong enough to offset imports and production. A surprise drop in shipments for the first 25 days of March due to lower exports to major buyers Europe and India may continue to weigh on the market.

In other markets, Brent fell slightly, remaining within its range of the past two weeks, as the effect of the Cyprus bailout faded and traders saw little direction for the market.

In vegetable oil markets, U.S. soyoil for May delivery lost 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange closed 0.4 percent lower.

Regional Equities - BANGKOK, March 26 (Reuters) - Thai stocks rose for a second day on Tuesday as investors bought telecom stocks on strong growth prospects while Indonesian shares climbed to their two-week high amid expectations the parliament would approve a new central bank governor.

Stocks in Singapore ,Malaysia and the Philippines ended higher while Asia was steady amid worries Cyprus's bailout could be a template applicable to larger states that might get into difficulty. 

Bangkok's SET index gained 1.3 percent to 1,544.03, further recovering from last week's 7.5 percent loss, led by a 4 percent gain in telecoms shares such as Total Access Communication and Advanced Info Service.

CIMB analyst Teerawut Kanniphakul said a launch of 3G service by telecom operators this year was fundamentally positive for the sector.

"Telecoms stocks are among good defensive plays in the event of high market volatility. The sector has a growth story with high dividend payouts," he said.

Jakarta's Composite Index  finished up 0.9 percent at 4,842.52, hitting a two week intraday high of 4861.76 at one point as market investors expected Finance Minister Agus Martowardojo to win parliament's approval to become the next head of the central bank.

"I think parliament will approve Agus Marto as the Central Bank Governor. The market should be positive, and at this point the market has already reflected the outcome," said Jakarta-based John Teja, director of Ciptadana Securities.

The Indonesian rupiah turned slightly higher on inflows to the country’s stocks and bond markets, traders said.

RTRS - India's 2012 and 2013 palm oil imports seen up 17 pct

MUMBAI, March 25 (Reuters) - India's imports of palm oil could rise more than 17 percent in the year to October 2013 to stand at 9 million tonnes, as the edible oil is the cheapest available, despite an import duty, the country's top importer of edible oils said on Monday.

The rise in imports by the south Asian country, the world's biggest importer of edible oil, would help top producers Indonesia and Malaysia reduce bulging palm oil stocks and so support prices that dropped 23 percent last year.

"No other local oil is as cheap as imported palm oil," Dinesh Shahra, the managing director of Ruchi Soya, , told Reuters in an interview. "Vegetable oil demand is growing in India."

India is likely to buy 9 million tonnes of palm oil overseas in 2012/13, including 1.5 million tonnes of refined palm oil. It imported 7.67 million tonnes of palm oil in 2011/12.

Growing refining capacity in Indonesia, the world’s biggest palm oil producer, would boost supplies of refined edible oil, boosting India’s imports of the refined variety in the next few months and threatening domestic refiners, Shahra said.

"Because of the narrow spread between crude and refined oil, together with a 5 percent duty differential, refined palm oil has been coming into India," he said.

India slapped a duty of 2.5 percent on imports of crude edible oils in January, reducing to 5 percent from 7.5 percent the difference in the duty on the two varieties.

The gap between the landed cost of refined and crude palm oil has fallen to $20 per tonne from more than $70 in December, prompting importers to opt for the refined grade, Shahra said.

Indian edible oil refiners have consistently asked the government to raise the import duty on crude palm oil to 10 percent and refined oil to 20 percent, to protect the domestic industry.

In the first four months of the marketing year that started on November 1, India’s edible oil imports jumped 21.4 percent to 3.65 million tonnes, due to a surge in palm oil imports by a quarter.

Indians use vegetable oils to cook most of their famed curries. The country's rising prosperity and growing population have continually drive up its edible oil needs, even as domestic supply remains stagnant.

"India will be a 20-million-tonne vegetable oil economy in the coming 5 years, with local production of 6 million tonnes and imports of 14 million tonnes," Shahra said.

India’s imports of edible oil in the current marketing year are likely to rise to 11 million tonnes, from nearly 10 million a year ago, he said.

India mainly buys palm oils from Indonesia and Malaysia, and a small quantity of soyoil from Brazil and Indonesia.

Ruchi Soya has also been raising imports of palm oil to retain and increase market share, Shahra said, but gave no estimate of its imports for the current year.

Trader's highlight

DJI - NEW YORK, March 25 (Reuters) - U.S. stocks fell on Monday on renewed concerns about the developments in Cyprus and the euro zone, which wiped away earlier gains that drove the S&P 500 index to less than a point away from its record close.

Stocks fell after Jeroen Dijsselbloem, who heads the Eurogroup of euro-zone finance ministers, told Reuters and the Financial Times that when failing banks need rescuing, euro-zone officials would turn to the bank's shareholders, bondholders and uninsured depositors to contribute to their recapitalization.

He also said that Cyprus was a template for handling the region's other debt-strapped countries.

But stocks came off their lows after Dijsselbloem clarified his previous comments and said, "Cyprus is a specific case with exceptional challenges, which required the bail-in measures we have agreed upon yesterday. Macro-economic adjustment programmes are tailor-made to the situation of the country concerned and no models or templates are used."

Before his remarks, the Dow industrials hit yet another record intraday high and the S&P 500 edged closer to its highest closing level ever on Monday after negotiators reached a deal to keep Cyprus afloat with a financial bailout and avert the country's possible exit from the euro zone.

"There was certainly a sigh of relief that a deal was reached, but there are still growing concerns that more work needs to be done," said Jack Ablin, the chief investment officer of BMO Private Bank in Chicago.

Banking shares were among the day's top decliners. Shares of Morgan Stanley fell 1 percent to $21.97 while Bank of America dropped 1.3 percent to $12.40.

The Dow Jones industrial average slipped 64.28 points, or 0.44 percent, to end at 14,447.75. The Standard & Poor's 500 Index dipped 5.20 points, or 0.33 percent, to 1,551.69. The Nasdaq Composite Index declined 9.70 points, or 0.30 percent, to close at 3,235.30.

Oils - NEW YORK, March 25 (Reuters) - Crude oil futures rose on Monday in choppy trading after a bailout deal for Cyprus improved the outlook for fuel demand in the euro zone.

Brent price gains were curbed by caution about the Cyprus bailout and Europe's economy, while U.S. crude prices rose more than 1 percent and narrowed the spread between the two contracts to less than $13 a barrel during the session.

Cyprus reached a deal with international lenders early on Monday, agreeing to shut down its second-largest bank and inflict heavy losses on big depositors in return for a 10 billion euro ($13 billion) bailout.

Brent May crude rose 51 cents to settle at $108.17 a barrel, having traded from $106.80 to $109.07.

U.S. May crude rose $1.10 to settle at $94.81 a barrel, above the 50-day moving average at $94.38 and having reached $95.65 during the session.

Brent's premium to U.S. crude ended lower at $13.36 a barrel based on settlements. The spread narrowed to $12.85 during the session, the narrowest since early July.

Brent briefly turned lower and then seesawed after comments from the chief of the Eurogroup of euro zone finance ministers dampened investor enthusiasm that had pushed oil and share prices higher after the deal to help Cyprus.

The rescue agreed for Cyprus represents a new template for resolving euro zone banking problems and other countries may have to restructure their banking sectors, Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup, said.

"The relief at the fact that Cyprus will not suffer an uncontrolled bankruptcy and have to leave the euro zone may prompt financial investors to increase their long positions in crude oil," analysts at Commerzbank said in a note.

While the deal removed the immediate risk of financial meltdown in Cyprus and its possible exit from the euro zone, concerns persisted about the Mediterranean island and the euro zone economy as a whole.

"The deal puts the fire out for now. The question is whether it is sustainable," said Thorbjorn Bak Jensen, an analyst at AS Global Risk Management in Copenhagen.

"The story is not finished yet; there will still need to be more haircuts ... The positive is that something has been agreed on, but there is still some time to go."

Saudi Arabia's oil minister, Ali al-Naimi, said on Monday that an oil price around $100 a barrel was reasonable for consumers and producers, highlighting the top crude exporter's preferred range.

Brent prices in mid-February pushed above $119 a barrel to its highest level this year, before pulling back on economic concerns and improving North Sea supply.

Middle East tensions, including the civil war in Syria and Iran's dispute with the West over Tehran's nuclear program, continue to support oil prices.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell for a second straight session on position-squaring ahead of U.S. government reports this week on old-crop stocks and 2013 U.S. plantings, traders said.

* Nearby soybean and soymeal contracts lost ground against deferred contracts on spreads.

 

·         Trade expects USDA's planting intentions report on  Thursday to project U.S. soybean plantings at a record-high 78.4   million acres. 

·         Trade expects USDA to report U.S. March 1 soybean stocks   on Thursday at 935 million bushels, the lowest level in nine  years.

 

·         USDA said private exporters reported sales of 234,000  tonnes of U.S. soybeans to China for delivery in 2013/14.

·         USDA reported export inspections of U.S. soybeans in the  latest week at 18.458 million bushels, above trade expectations  for 11 million to 14 million.

·         Brazil's soybean harvest was 60 percent complete as of   Friday, up from 54 percent the previous week and in line with  the year-ago figure of 61 percent, agriculture consultancy AgRural said. However, rains have slowed progress and threatened  crop quality. 

 

·         Egypt's Meditrade issued an international tender to purchase up to 12,000 tonnes of soyoil and 12,000 tonnes of sunflower oil, European traders said. 

BMD CPO - SINGAPORE, March 25 (Reuters) - Malaysian palm oil futures fell on Monday on weaker exports, although losses were limited as a last-ditch deal to bailout Cyprus supported investor appetite for riskier assets.

Cyprus clinched a deal with international lenders for a 10 billion euro ($13 billion) bailout, sending global markets including crude oil and the euro higher.

But palm oil came under pressure as Malaysian exports fell to 1,055,914 tonnes in the first 25 days of the month, a 7 percent slide compared to the same period last month.

Data from cargo surveyors also showed a slowdown of shipments to major edible oil buyers India, the United States and the European Union.

"We saw a drop in exports to India ... Indian buyers last month did not book that many shipments for March in advance on uncertainty of the tax change," said a Singapore-based trader with a global commodities house.

Indian buyers avoided booking cargoes for March in advance as they expected the government to use its budget in late February to announce a hike in import tariffs, although that did not materialise.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 1.3 percent to 2,460 ringgit ($794) per tonne by Monday's close. Intraday prices touched a high of 2,505 ringgit, the highest level since Feb. 22, but failed to rally.

Total traded volume stood at 35,577 lots of 25 tonnes each, much higher than the usual 25,000 lots.

Leading analyst Dorab Mistry has forecast palm oil futures could trade between 2,400 and 2,700 ringgit per tonne by the end of May due to lower stocks and output, an upward revision from his previous forecast.

He also expects Malaysian palm oil stocks to drop below 2 million tonnes in June.

"We generally agree with Dorab Mistry’s short-term view ... However, we do not think Malaysia palm oil inventory will reach 2 million tonnes as we believe it should reach the lowest level of 2.27 million tonnes by April 2013," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients.

Palm oil stocks in Malaysia, the world's second-largest palm producer, stood at 2.44 million tonnes in end-February and traders are counting on seasonally slower production and healthy demand to bring stocks down.

In other markets, Brent rose above $108 on Monday, as hopes brightened for a revival in demand after euro zone ministers approved an EU-IMF plan for restructuring Cyprus's banking sector, averting a worsening crisis for the region.

In other vegetable oil markets, U.S. soyoil for May delivery edged down 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.2 percent.

Regional Equities - BANGKOK, March 25 (Reuters) - Thai stocks rose 3 percent on Monday as Southeast Asia stock markets followed gains in larger regional markets after Cyprus and the European Union agreed on a plan to tackle the island's financial crisis.

Most markets in the region had slipped into negative territory last week due to the Cyprus crisis. Large-cap stocks, which were under heavy selling pressure last week, broadly rebounded on Monday.

Bangkok's SET index closed at 1,523.95, paring most of Friday 3.3 percent drop, led by a 2.8 percent gain in banking shares after Friday's 2.5 percent loss. 

"We believe the current sell-off is a great buying opportunity for blue chips as investors are likely to focus more on fundamentals after this," CIMB Securities (Thailand) said in a research note.

The Philippines climbed 1.21 percent to 6,597.59, Indonesia rose 1.2 percent to 4,777.90 while Malaysia gained 1 percent to 1,643.89 as foreign investors bought shares worth 326 million ringgit ($105 million), stock exchange data showed.

RTRS - Palm oil to draw support from lower stocks, output -Mistry

SINGAPORE, March 22 (Reuters) - Palm oil futures could rise to 2,400 to 2,700 ringgit ($770 to $865) per tonne by the end of May, as weaker production speeds a fall in stockpiles, leading analyst Dorab Mistry said on Friday.

The forecast is an upward revision of his earlier prediction for prices to fall below 2,200 ringgit between April and the end of June, as crude palm oil yields have fallen more than expected.

"I am projecting today that Malaysian stocks will dip below 2 million tonnes in June 2013. Indonesian stocks will also be drawn down below 4 million tonnes," Mistry said in a speech to be delivered at an industry seminar in Beijing.

Palm stocks in Malaysia, the second largest producer of the commodity, stood at 2.44 million tonnes at the end of February. While top producer Indonesia does not publish official stocks data, Mistry pegged its stocks at close to 5 million tonnes in early March.

A weaker ringgit ahead of the Malaysian elections, which have to be called by the end of April, could also offer greater scope for the ringgit-denominated futures to rise as the commodity becomes cheaper for overseas buyers, added Mistry, who is the head of vegetable oil trading with Indian conglomerate Godrej Industries 

But prices will still come under pressure after June, Mistry said, and especially once the low production cycle ends in the August-September period.

With energy prices on a decline, futures may fall to 2,000 ringgit, or even lower, after August.

"I do not expect them to break 1,800 ringgit unless Brent crude oil trades below $80 per barrel," he said, sticking to a prediction he made in Kuala Lumpur this month. 

RTRS -- Brazil port strike called off, flexible on reform -union

SAO PAULO, March 21 (Reuters) - Brazilian dock workers called off a national port strike set for next week and said they are willing to relax rules that allow unions to control labor assignments at terminals, following talks with the government over reform of the country's ports, union leaders said on Thursday.

Progress in talks between the unions and government will help relieve some pressure building on the global soy and sugar markets, which have been fixating on concerns that Brazil's underdeveloped port infrastructure might grind to a hault under the weight of record crops this season.

Port workers have interrupted the flow of commodities such as soy, corn, coffee, sugar and meats through Brazilian ports over the past few months with occasional six- to 24-hour strikes, hoping to pressure the government to negotiate its reforms.

The timing is delicate. Brazil is in the peak of its grain export season and about to pick up its sugar exports in the coming months. Port worker unions were planning a new strike on Monday but called it off after progress in talks with government negotiators.

Dock workers fear the government's proposed overhaul of Brazil's 1993 port regulations would lead to a loss in jobs and benefits because private operators would not have to hire through a public, centralized agency, known as "OGMO."

The government says the planned changes for ports are critical for attracting billions of dollars in private investment. Brazil could surpass the United States in soybean production exports soon, but lacks the infrastructure to ensure smooth delivery.

Even without strikes, top buyers have paid premiums for scarce U.S. soybeans because they are afraid of delays in Brazil, due to growing lines of trucks hauling grain and sugar.

Trader's highlight

DJI - NEW YORK, March 21 (Reuters) - U.S. stocks fell on Thursday as Oracle's revenue fell far short of expectations and worries intensified about the effect of Cyprus' troubles on the euro zone.

Oracle Corp shares lost 9.7 percent to $32.30 and were the biggest drag on Nasdaq, a day after its revenue disappointment, which it blamed on sales execution.  It was the stock's biggest percentage drop since December 2011.

Stock losses accelerated late in the session as anxiety about Cypriot finances increased. Just before the U.S. market's close, Standard & Poor's cut Cyprus' sovereign credit rating deeper into junk status.

The European Union gave Cyprus until Monday to raise the billions of euros it needs to get an international bailout - or face the collapse of its financial system and likely exit from the euro bloc.

"I think the realization is, there isn't going to be a quick remedy to the situation, nor is it easy to forecast what's going to happen. Uncertainty breeds selling, especially in a market that's gone as far as we have in the previous two weeks," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

The latest euro-zone concerns hit the market after weeks of gains that drove the Dow up to break record highs and lifted the S&P 500 to within striking distance of its all-time record close of 1,565.15.

Investors fear a collapse of the banking system in Cyprus will tighten credit across Europe and become yet another hurdle on the region's bumpy road out of economic crisis. Adding to those fears, data showed the region's economy contracted more than expected in March.

The Dow Jones industrial average  slid 90.24 points, or 0.62 percent, to end at 14,421.49. The Standard & Poor's 500 Index dropped 12.91 points, or 0.83 percent, to finish at 1,545.80. The Nasdaq Composite Index  lost 31.59 points, or 0.97 percent, to close at 3,222.60.

Oils - NEW YORK, March 21 (Reuters) - Crude oil prices fell more than 1 percent on Thursday as Cyprus struggled to raise enough money to qualify for a bailout and avoid a banking collapse, reviving worries about the outlook for petroleum demand in Europe.

The European Union has given Cyprus, the debt-laden Mediterranean island, until Monday to raise billions of euros it needs to receive an international bailout or face the collapse of its financial system and likely exit from the euro currency zone.

"Definitely, the euro zone factors are weighing on crude," said John Kilduff, partner at Again Capital LLC in New York.

Adding to concerns about Europe, the euro zone's economic downturn has deepened in March - even before the Cyprus crisis became acute - data from survey compiler Markit showed.

The problems in Europe and the precarious situation in Cyprus countered support from more positive economic data from the United States, where existing home sales and leading economic indicators rose last month.

Brent May crude fell $1.25, or 1.15 percent, to settle at $107.47 a barrel, having traded as low as $107.08.

U.S. May crude fell $1.05, or 1.12 percent, to settle at $92.45 a barrel, after falling as low as $91.84. The U.S. April crude contract expired and went off the board on Wednesday.

Brent's premium to U.S. crude fell as low as $14.61 during the session, before ending at $15.02 based on the contract settlements and narrowing the spread by 20 cents.

MIXED GLOBAL ECONOMIC DATA

Flash euro-zone manufacturing data showed unexpected declines in March, driven by surprise weakness in the German and especially French purchasing managers' indices (PMI).

Most responses in Markit's business survey were received before Cyprus pushed the 17-nation currency bloc into fresh turmoil and analysts said respondents may now be even more gloomy.

The Flash Eurozone Composite Purchasing Managers' Index fell to 46.5 in March, lower than all forecasts in a Reuters poll of 23 economists.

More supportive U.S. data released later in the session did little to improve investor sentiment.

The number of Americans filing new claims for jobless benefits edged higher last week, but a trend reading dropped to its lowest in five years.

Business conditions in the U.S. mid-Atlantic region rose to the highest level since September, according to a survey from the Federal Reserve Bank of Philadelphia, and U.S. housing market data also pointed to a recovery.

Chinese data also was viewed as supportive to oil futures, as better-than-expected manufacturing figures pointed to an improved fuel demand outlook in the world's second-largest oil consumer.

"The Chinese data is better than expected but it's not extraordinary," said Olivier Jakob, oil analyst at Petromatrix in Zug. "Crude oil imports in China for the first two months were lower than last year."

In China, the HSBC Purchasing Managers' Index for March revived to 51.7 in March from 50.4 in February, but remained below a two-year high of 52.3 reached at the beginning of the year.

The reading is consistent with year-on-year GDP growth of around 8 percent, according to a Credit Agricole-CIB analyst, above the 7.5 percent GDP growth target for 2013 released at China's annual legislative session this month.

CBOT Soybean -  Soybean futures on the Chicago Board of Trade rose 2 percent, their biggest daily gain in a month, on technical buying and concerns about tight U.S. stocks, traders said.

* The benchmark May soybean contract broke through its 20-, 50-, 100- and 200-day moving averages, triggering chart-based buying.

 

·         Uncertainty about U.S. old-crop soybean supplies ahead of USDA's March 28 quarterly U.S. grain stocks report lent support.

·         Gains in deferred soybean contracts capped by expectations   for expanded U.S. soy plantings in 2013. A Farm Futures Magazine survey pegged U.S. 2013 seedings at a record 79.09 million  acres.  

 

·         Soyoil futures supported by firming U.S. cash soyoil   market amid a slowing U.S. soy crush and continued demand from    biodiesel producers.  

 

·         USDA reported export sales of U.S. soybeans in the latest week at 107,800 tonnes for 2012/13 and 234,100 tonnes for   2013/14, below trade expectations.

  

·         USDA put soymeal sales at 143,400 tonnes and soyoil sales  at 19,600 tonnes, both above trade expectations.

  

·         Brazilian dock workers called off a national port strike set for next week, following talks with the government over  reform of the country's ports, union leaders said.

·         Argentina's agriculture ministry estimated the country's 2012/13 soybean crop at 51.3 million tonnes, slightly below USDA's figure of 51.5 million

ARGENTINA Soybean - BUENOS AIRES, March 21 (Reuters) - Argentina's closing soy prices and trends on Thursday:

• In the main grains market of Rosario, soy closed mostly higher at 1,620 to 1,700 pesos ($318-$333) per tonne, compared with Wednesday's 1,640 pesos, buoyed by gains in U.S. soy futures and strong demand from local crushers, traders said.

• Trade volume was about 30,000 tonnes versus 15,000 tonnes in the prior session.

• Soybean futures on the Chicago Board of Trade rose 2 percent on Thursday, their biggest daily gain in a month, on technical buying and concerns about tight U.S. stocks, traders said.

• Rosario soy for delivery in May, which is quoted in U.S. dollars, closed up $10 at $325 per tonne.

• In the southern port of Bahia Blanca, where no official price was listed on Wednesday, soy ended at 1,600 pesos per tonne.

Argentina has approved another 2 million tonnes of 2012-13 corn exports, a leading grains industry group said on Thursday, in news that boosted late spot trading in corn in Rosario. 

BMD CPO - KUALA LUMPUR, March 21 (Reuters) - Malaysian palm oil futures ended off their highest in more than three weeks on Thursday after refiners took advantage of a cheap local tax rate to boost crude palm oil purchases.

Crude palm oil from No.2 producer Malaysia is currently cheaper than products from top producer Indonesia, thanks to an export tax levied at 4.5 percent, compared with Indonesia's 10.5 percent.

Malaysian palm oil exports rose by up to 14 percent in the first 20 days of March, but investors are wary that rising prices could lead to a tax hike in May and weigh on demand. Malaysia sets its export tax on crude palm oil each month based on prices. April's tax rate has been set at 4.5 percent.

Investors are also concerned that an import duty hike in India, the world's biggest edible oil buyer, will crimp future demand, traders said.

"Although the demand continues to show signs of struggling, the increase in crude palm oil buying by local refineries is suggesting for the most part everything is under control," said a trader with a local commodities broker in Malaysia.

By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had risen 0.5 percent to 2,455 ringgit ($787) per tonne, coming off an early high of 2,477 ringgit, a level unseen since Feb. 25.

Total traded volume stood at 39,194 lots of 25 tonnes each, higher than the usual 25,000 lots.

Traders say an export duty hike for the crude grade would turn buyers to refined palm products. Cargo surveyor data showed that refined palm olein exports almost doubled between March 1 and 20, offsetting weaker crude palm oil shipments and giving a leg up to overall exports.

The higher exports of palm oil products, alongside seasonally slowing output, would help to further ease inventory levels in Malaysia, which have edged down to 2.44 million tonnes in February from December's record highs.

In other markets, crude oil was pushed lower on Thursday by fears of further turmoil in the euro zone, as Cyprus scrambled to avoid bankruptcy, and by manufacturing data which showed a deepening downturn in the currency bloc.

In other vegetable oil markets, U.S. soyoil for May delivery rose 0.8 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange also closed 0.8 percent higher.

Regional Equities - March 21 (Reuters) - Philippines and Singapore stocks recovered on Thursday helped by a pick-up in Chinese factory activity and a commitment by the U.S. Federal Reserve to its aggressive stimulus stance, but others ended weaker weighed down by a Cyprus bailout plan.

Singapore gained 0.6 percent, recovering from the previous session's two week closing low, led by a 3.5 percent jump in Singapore Telecommunications Ltd and 0.8 percent rise in top lender DBS Group Holdings Ltd 

The Philippines stock index ended 0.8 percent firmer, snapping an eight-session falling streak led by a 3.2 percent gain in Philippine Long Distance Telephone Co

Vietnam , the region's best performer as well as its smallest bourse, gained 1 percent to a one-month high on hopes of an interest rate cut in the near future after the country's two largest cities reported falling consumer prices. 

Thailand ended 0.9 percent weaker led by banks, extending the loss to 4.4 percent this week, a day after Thai baht hit a 16-year high. Krung Thai Bank PCL, which fell 6.4 percent, dragged the overall index.

Indonesia ended 0.6 percent weaker led by financials, while Malaysia edged down 0.05 percent, despite a $19.44 million foreign inflow.

INDONESIA MAY KEEP PALM OIL EXPORT TAX AT 10.5% IN APRIL

March 21 (Bloomberg) -- Base price for crude palm oil export may be raised to $787/t in April from $782 in March, Steaven Halim, an official at Indonesian Palm Oil Association, says in e-mail response to Bloomberg.

* NOTE: Trade Ministry may announce April tax rate and base price next week

Bloomberg - Soybeans Advance to One-Week High on Shipment Delays in Brazil

Soybeans climbed for a second day to the highest level in almost a week on speculation that demand for U.S supplies will increase because of shipping delays in Brazil, set to be the biggest exporter this year.

The contract for delivery in May gained as much as 0.9 percent to $14.33 a bushel on the Chicago Board of Trade, the highest most-active price since March 15. Futures were at $14.31 by 1:26 p.m. Singapore time, up 5.9 percent from an almost seven-month low on Jan. 11.

Grains at Paranagua Port, Brazil’s largest soybeans and corn exports hub, were loaded at half the normal pace this month as rains disrupted operations, the port said yesterday. Loading was halted for 27 days this year because of rain and 73 ships were waiting to load grains and soybeans, it said in a report.

Read all : http://www.bloomberg.com/news/2013-03-21/soybeans-advance-to-one-week-high-on-shipment-delays-in-brazil.html

Bloomberg - Asian Stocks Advance, Led by Japan; Kiwi Increases as Oil Falls

March 21 (Bloomberg) -- Asian stocks rose, with the Topix Index climbing to the highest since 2008, as the Federal Reserve signaled no end to its record stimulus and investors speculated Japan’s new central bank governor will announce “bold” easing. 

New Zealand’s dollar climbed, while oil slid. The MSCI Asia Pacific Index added 0.3 percent as of 9:43 a.m. in Tokyo. The Topix increased 1.2 percent after a public holiday. Standard & Poor’s 500 Index futures were little changed after the gauge yesterday snapped a three-day losing streak. 

New Zealand’s kiwi strengthened 0.4 percent against the dollar as the economy grew at the fastest pace in three years. 

Oil for May delivery retreated after the biggest advance in two weeks. The European Central Bank will probably delay a decision on continued support for Cyprus’s banks, two people familiar with the deliberations said yesterday. 

Chairman Ben S. Bernanke said the Federal Reserve won’t reduce its record monetary stimulus until unemployment drops further. Japan’s new central bank governor Haruhiko Kuroda may announce a policy shift today at his first press conference, the Nikkei reported without attribution.

“If the Bank of Japan give details today such as announcing an increase of risk asset purchases, then the market is going to be very impressed,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co. in Tokyo.

“The Federal Reserve Bank said that it will keep easing while lifting Its economic outlook, which is a great situation for the stock market.”

New Zealand’s economy grew at the fastest pace in three years led by retailing and the rebuilding of earthquake-damaged Christchurch city. Gross domestic product rose 1.5 percent in the three months ended Dec. 31 from the previous quarter, exceeding the 0.9 percent median estimate in a Bloomberg News survey of 10 economists.

The kiwi traded for 82.57 cents. Japan’s exports dropped 2.9 percent in February from a year earlier, the Finance Ministry said in Tokyo today, exceeding an estimate for a 1.7 percent decrease.

Bloomberg - Oil Production in U.S. to Top Imports for First Time Since 1995

March 20 (Bloomberg) -- U.S. crude oil production in the fourth quarter will exceed imports for the first time since 1995, as booming fields in North Dakota and Texas put the nation on track to surpass a quarter-century output record. The U.S. Energy Information Administration, the research arm of the Energy Department, said domestic crude production will be 2 million barrels a day higher than imports at the end of 2014, as oil from outside the U.S. is forecast to drop late in that year.

“This projected change is primarily because of rising domestic crude oil production, particularly from shale and other tight rock formations in North Dakota and Texas,” the agency said in a “Today in Energy” note posted on its website. In global markets today, West Texas Intermediate oil rose after its steepest plunge in a month. Brent futures rebounded from their lowest level since December. U.S. crude stockpiles fell 413,000 barrels last week, the American Petroleum Institute said yesterday.

RTRS - Cyprus lawmakers reject bank tax; bailout in disarray

NICOSIA, March 20 (Reuters) - Cyprus overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing international efforts to rescue the latest casualty of the euro zone debt crisis into disarray.

The vote in the tiny legislature was a stunning setback for the 17-nation currency bloc, angering European partners and raising fears the crisis could spread; lawmakers in Greece, Portugal, Ireland, Spain and Italy have all accepted austerity measures over the last three years to secure European aid.

With hundreds of demonstrators outside the parliament chanting "They're drinking our blood", the ruling party abstained and 36 other lawmakers voted unanimously to reject the bill, bringing the Mediterranean island, one of the smallest European states, to the brink of financial meltdown.

Finance Minister Michael Sarris had already headed to Moscow, amid speculation Russia could offer assistance given the high level of Russian deposits in Cypriot banks. President Nicos Anastasiades, barely a month in office, spoke by phone with Russian President Vladimir Putin after the vote.

Anastasiades was due to meet party leaders at 9 a.m. (0700 GMT) on Wednesday to explore a way forward.

"The voice of the people was heard," 65-year-old pensioner Andreas Miltiadou said among a crowd of demonstrators jubilant after the vote.

EU countries had warned they would withhold 10 billion euros ($13 billion) in bailout loans unless depositors in Cyprus, including small savers, shared the cost of the rescue, an unprecedented step in the stubborn debt crisis.

The European Central Bank had threatened to end emergency lending assistance for teetering Cypriot banks, which were hard hit by the financial crisis in neighbouring Greece.

The island's partners barely disguised their anger.

Euro zone paymaster Germany, facing an election this year and increasingly frustrated with the mounting cost of bailing out its southern partners, said Cyprus had no one to blame but itself for the gravity of the situation.

DEBTS TOO HIGH

"Cyprus requested an aid programme," German Finance Minister Wolfgang Schaeuble told ZDF television. "For an aid programme we need a calculable way for Cyprus to be able to return to the financial markets. For that, Cyprus's debts are too high."

Dutch Finance Minister Jeroen Dijsselbloem, who chairs the Eurogroup of finance ministers, said the bailout offer still stood providing the conditions were met. European Central Bank Governing Council member Ewald Nowotny called on Cyprus to show "discipline and the readiness to act rationally."

But it was Europe's demand at the weekend that Cyprus break with previous EU practice and impose a levy on bank accounts that led outraged Cypriots to empty bank cash machines and unsettled financial markets.

An important issue in negotiations has been the high level of deposits held in the island's banks by non-EU citizens and companies, notably from Russia, where Cyprus has established itself as a major provider of offshore financial services.

BACKLASH

The EU and International Monetary Fund are demanding Cyprus raise 5.8 billion euros from bank depositors to secure the bailout it needs to rescue its financial sector. They say a bailout of more than 10 billion euros would tip Cyprus's debt level into unmanageable territory for its 1.1 million people.

But lawmakers said the levy on deposits crossed a red line.

"You can't take a 10,000-metre jump without a parachute. And that's what they're asking of us," said George Perdikis of the Greens Party.

International market reaction has been muted so far but that might change.

While Brussels has emphasised that the measure was a one-off for a country that accounts for just 0.2 percent of European output, fears have grown that savers in other, larger European countries might be spurred to withdraw funds.

Dijsselbloem, the Eurogroup chair, said there would be no need to impose a levy in any of the 16 other euro countries.

Some Cypriots hope they can get aid from Russia, which has bailed out Cyprus in the past. Many Russians keep their money in Cyprus and operate businesses from there.

Russian authorities have denied that the Kremlin might offer more money, possibly in return for a future stake in Cyprus's large but as yet undeveloped offshore gas reserves, which have raised the island's strategic importance.

An influx of Russian money and influence since the collapse of the Soviet Union has led some Brussels officials to complain privately that Cyprus acts at times as a "Trojan donkey" for Moscow inside the European Union since it joined in 2004.

Banks in Cyprus are to remain shut on Wednesday to avoid a bank run. The island's stock exchange will also be closed on Wednesday.