RTRS - USDA South American soy crop forecasts too optimistic -Oil World

HAMBURG, April 16 (Reuters) - South American soybean crop forecasts by the U.S. Department of Agriculture (USDA) are too optimistic and do not sufficiently take into account recent poor crop weather, German oilseeds analyst Oil World said on Tuesday.

Total soybean crops in the main South American exporters - Brazil, Argentina, Paraguay, Bolivia and Uruguay - in early 2013 will total 143.60 million tonnes, Oil World estimates, below the USDA April 10 forecast of 148.75 million tonnes but still up from last year’s 114.95 million.

“In our opinion the USDA estimates of April 10 are overly optimistic for Brazil, Argentina and Uruguay, not yet reflecting the crop damage resulting from detrimental weather conditions,” Oil World said.

Big Argentine and Brazilian harvests are needed in early 2013 to relieve the tight global soybean market after a small U.S. crop last year.

Late-season rain followed by dryness cut yields in Brazil. Drought in parts of north Brazil is the worst in 50 years, Oil World said.

Dryness followed by very heavy rain has also threatened yields in Argentina. Argentine second-crop soybeans have not developed well, the firm said.

Oil World retained its forecast of Brazil's 2013 soybean crop of 81.3 million tonnes, up from 66.3 million in 2012. The USDA on April 10 also retained its forecast of Brazil’s crop at 83.5 million tonnes.

Oil World also kept its forecast for the Argentine crop at 48.5 million tonnes of soybeans in early 2013, which is up from the 39.7 million harvested in 2012 but below the 51.50 million forecast by the USDA.

Oil World expects Uruguay to harvest 2.6 million tonnes in 2013, slightly higher than its 2.45 million tonnes last year, but it warned the crop could fall as low as 2.5 million.

RTRS - U.S. inflation, factory data favor continued Fed easing

WASHINGTON, April 16 (Reuters) - U.S. consumer prices fell in March for the first time in four months and factory output slipped, strengthening the argument for the Federal Reserve to maintain its monetary stimulus to speed up economic growth.

Other data on Tuesday suggested the housing market recovery was losing momentum, even though housing starts breached the 1-million unit rate mark for the first time since June 2008.

"For the Fed, it's business as usual," said Millan Mulraine, senior economist at TD Securities in New York. "There is not likely to be an acceleration in growth momentum that would cause them to shift their policy stance anytime soon."

The Labor Department said its Consumer Price Index edged down 0.2 percent last month as gasoline prices tumbled, unwinding some of February's 0.7 percent increase. Economists had expected a flat reading.

Underscoring the benign inflation environment, consumer prices rose just 1.5 percent in the 12-months through March -- the smallest increase since July. Prices had increased 2.0 percent year-on-year in February.

Stripping out volatile energy and food costs, the so-called core CPI was up only 0.1 percent after gaining 0.2 percent in February. That lowered the 12-month increase to 1.9 percent in March from 2.0 percent in February.

A separate report from the Fed showed output at the nation's factories decreased 0.1 percent after advancing 0.9 percent in February. The decline was fairly broad-based, with output dropping for primary metals and electronics. Automobile assembly, however, increased.

Despite the factory weakness, overall industrial production rose 0.4 percent last month due to a jump in utilities' output.

Stocks on Wall Street were trading higher as strong earnings from Coca-Cola and Johnson & Johnson buoyed investor sentiment. U.S. Treasury debt prices fell, while the dollar weakened against a basket of currencies.

Economic data for January and February have suggested growth accelerated in the first quarter after activity almost stalled in the final three months of 2012.

But in a replay of the prior two years, the economy appears to have hit a speed bump at the end of the quarter, with data ranging from employment to retail sales and manufacturing weakening significantly in March.

Much of the weakness is blamed on higher taxes and deep government spending cuts put in place in Washington.

"We definitely see the second quarter slowing from the first in terms of overall growth across many of the sectors. Obviously, the drag from fiscal policy is playing into this a little bit," said Erik Johnson, a senior U.S. economist at IHS Global Insight in Lexington, Massachusetts.

MUTED INFLATION

The lack of inflation and slowing economic growth bolster the case for the Fed to remain on its very easy monetary policy path, despite divisions among policymakers over the wisdom continued asset purchases.

Minutes of the Fed's March 19-20 meeting published last week suggested the U.S. central bank was moving closer to ending its monthly $85 billion purchases of mortgage and Treasury bonds meant to keep interest rates low and spur faster job growth.

On Tuesday, New York Federal Reserve Bank President William Dudley cautioned against pulling back too soon, pointing to the sharp moderation in the pace of job growth in March.

"I'd note that we saw similar slowdowns in job creation in 2011 and 2012 after pickups in the job creation rate and this, along with the large amount of fiscal restraint hitting the economy now, makes me more cautious," he told the Staten Island Chamber of Commerce.

A third report from the Commerce Department showed housing starts rose 7.0 percent last month to a 1.04 million-unit annual rate, the highest in nearly five years.

However, the increase was driven by the volatile multi-family sector, while groundbreaking for single-family units fell. In addition, permits for future construction tumbled 3.9 percent -- reversing February's gain.

That suggested a slowdown in housing activity, coming on the heels of a report on Monday that showed a third straight monthly decline in homebuilders' confidence in April.

"The decline in single starts and permits is consistent with recent hints the housing recovery has lost some momentum," said David Sloan, senior economist at 4Cast Ltd in New York.

Trader's highlight

DJI - NEW YORK, April 16 (Reuters) - U.S. stocks jumped more than 1 percent on Tuesday, a day after their worst decline since November, as gold prices rebounded and earnings from Coca-Cola and Johnson & Johnson improved the outlook for first-quarter results.

Inflation data, which reinforced expectations that the Federal Reserve will keep its stimulus plan in place, added to bullish sentiment.

The price of gold jumped 1 percent after its record daily drop in dollar terms on Monday. The SPDR Gold Shares ETF , which fell 8.8 percent on record volume Monday, rose 1.1 percent to $132.80. The S&P 500 materials index climbed 1.9 percent, leading the benchmark S&P 500 higher.

The market's advance followed the S&P 500's drop of more than 2 percent drop on Monday, giving the index its worst one-day percentage loss since Nov. 7. The S&P 500 is up 10.4 percent since the start of the year after enjoying a strong first-quarter run, partly as a result of the Fed's continued stimulus efforts.

"Yesterday I think was a bit out of line ... But I think the trend is that the market is consolidating, that we're going to see a little bit of a pullback here over the next month and a half or so, and then we'll get on to greener pastures," said Brian Amidei, managing director at HighTower Advisors in Palm Desert, California.

S&P 500 earnings are now expected to have risen 1.8 percent in the first quarter, based on actual results from 42 companies and estimates for the rest, up from a recent estimate of 1.1 percent growth.

The Dow Jones industrial average jumped 157.58 points, or 1.08 percent, to close at 14,756.78. The Standard & Poor's 500 Index gained 22.21 points, or 1.43 percent, to finish at 1,574.57. The Nasdaq Composite Index  rose 48.14 points, or 1.50 percent, to end at 3,264.63.

On Monday, a drop in the price of gold and other commodities triggered a sharp selloff in stocks. But stocks fell further late in the session after news of two fatal explosions near the finish line of the Boston Marathon.

Oils - NEW YORK, April 16 (Reuters) - Brent crude fell below $100 a barrel for the first time in nine months in heavy trading on Tuesday, extending losses triggered by data from China and the United States that suggested little growth in global oil demand.

Both Brent and U.S. crude pared losses in afternoon trading after each fell more than $2 earlier, suggesting the low prices could be luring back traders, analysts said.

"We are still seeing some weakness in price, in contrast to a number of markets that are snapping back to the upside with more vigor. That’s because we still have a lot of oil," said Tim Evans, an energy futures specialist at Citi Futures Perspectives in New York.

The spread between Brent crude and U.S. crude narrowed by nearly $1 to $10.88 after widening to as much as $11.93 during the trading session, and down from a $23 spread in February.

LIMITED DEMAND PROSPECTS

A powerful earthquake that struck southeast Iran sending strong tremors across the region, raised concerns it might damage oil production, which put a floor under oil prices, traders said.

Brent crude on Monday dropped about 3 percent in a wider commodities rout after data showed economic growth in China, the world's second-largest oil consumer, had slowed unexpectedly in the first three months of 2013.

Underscoring recent worries, the International Monetary Fund on Tuesday shaved projections for global economic growth for this year and next on the back of spending cuts in the United States and Europe.

CBOT Soybean - Soybean futures on the Chicago Board of Trade closed higher on Tuesday on bargain buying after selling off a day earlier, with firm U.S. cash markets lending additional support as old-crop soybean supplies dwindle.

·         New-crop November soybeans  rallied after setting a     10-month low early in the session.

·         Bull-spreading was an early feature, with the May/November  soybean spread reaching $2.02, May's biggest premium    in a month. However, the inverted May/July spread had   weakened by the close.

·         U.S. equity markets rose one day after the worst decline  since November. Gold made a modest recovery and government data   on inflation and housing signaled an improving economy.

 

·         Worries about bird flu reducing feed demand in China  continue to hang over the market. China's poultry sector has   lost more than $1.6 billion since reports emerged two weeks ago   of a new strain of bird flu, an official at the country's   National Poultry Industry Association said.

 

·         The slow start of exports from South America's new soybean  crop in March and April may compel China to buy more U.S.  soybeans in coming weeks, oilseeds analysts Oil World said.

·         South American soybean crop forecasts by the U.S.   Department of Agriculture are too optimistic and do not  sufficiently take into account recent poor crop weather - Oil World. 

BMD CPO - SINGAPORE, April 16 (Reuters) - Malaysian palm oil futures ended flat on Tuesday, as a recent commodities rout that dented investors' appetite for riskier assets offset earlier gains on bargain hunting.

Gold fell to its lowest in more than two years and Brent crude dropped below $100 per barrel for the first time since July as a shaky global economic outlook drove investors to liquidate assets, extending a sell-off in commodities into a third day.

The weak sentiment spread to the vegetable oil markets, with palm oil falling to a low of 2,281 ringgit per tonne on Monday its weakest since December, and the most active Dalian soybean oil contract tumbling to the lowest since its initiation.

"The market is quiet today due to uncertain factors in the external markets. Prices look to be supported at the 2,250 ringgit level and face resistance at 2,320 ringgit," said a trader with foreign commodities brokerage in Malaysia.

The new benchmark July contract on the Bursa Malaysia Derivatives Exchange ended flat at 2,301 ringgit ($757) per tonne.

Total traded volumes stood at 40,241 lots of 25 tonnes each, higher than the average 35,000 lots.

Malaysian palm oil shipments for the first half of the month fell by 4 percent from a month ago, said one cargo surveyor Intertek Testing Services, while another surveyor Societe Generale de Surveillance reported a steeper 7.2 percent drop.

Market participants will be keeping a close watch on the next export data for the April 1 to 20 period to gauge stocks level. A 10 percent increase in shipments in March helped ease inventory level to 2.17 million tonnes, the lowest in seven months.

In other markets, Brent crude sank below $100 a barrel for the first time in nine months on Tuesday in a broad commodities rout after recent weak data from China and the United States spurred worries about oil demand.

In other vegetable oil markets, U.S. soyoil for May delivery gained 0.8 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange recouped some losses after falling as much as 2.4 percent earlier.

Regional Equities - April 16 (Reuters) - Most of Southeast Asian markets ended firmer on Tuesday, led by Indonesia and Thailand as hopes over the region's economic growth in the face of a slowdown in Chinese economy helped investors to acquire risky assets.

Overall stock indexes in Malaysia, Indonesia, Singapore, and the Philippines are hovering at their near peak, but investor appetite for the region's stocks still remained robust.

HSBC Global Research in a note said weaker-than-expected Chinese economic data will have lesser impact of the ASEAN economies including Indonesia, Malaysia, Thailand, the Philippines and Vietnam.

"Here, the main growth driver at the moment is local demand, supported by a strong leverage cycle and, in the cases of Malaysia and Thailand, generous fiscal policy," it said.

"To be sure, exports of raw materials to China play a role for Malaysia and Indonesia, but a marginal slowing of these is likely to be offset by the monetary stimulus recently provided by the Bank of Japan."

Jakarta's Composite index  jumped more than 1 percent to close at its highest since April 3, when the index hit a record closing high, while Malaysia ended up 0.2 percent to a near one-week peak, helped by $81.84 million net foreign inflow.

Thailand gained 0.7 percent to its highest since April 2, while Singapore edged up 0.2 percent.

Economists have argued that markets were ripe for some correction after recent rallies, but have been taken aback by the sudden plunge in commodities, triggered by weak data from China and the United States that have sparked fresh concerns about the strength of economic recovery.

On Monday, the price of gold bullion tumbled another $125 per ounce in its biggest-ever daily loss, and its 9 percent loss was the biggest since 1983. 

Bucking the trend, the Philippines, the region's best performer with 16.8 percent gain for this year, lost 0.8 percent and Vietnam eased 0.4 percent on concerns over macroeconomy, margin calls and losses in global markets.

RTRS - China Q1 GDP growth eases to 7.7 pct yr/yr

BEIJING, April 15 (Reuters) - China's economic recovery unexpectedly stumbled in the first three months of 2013 as the annual rate of growth eased back to 7.7 percent from the 7.9 percent pace set in the final quarter of last year, official data showed on Monday.

The figures, announced by the National Bureau of Statistics, were weaker than market expectations in the consensus Reuters poll of a 8.0 percent expansion.

Many investors had been primed for an upside surprise versus the consensus after a Q1 surge in liquidity in the economy and an uptick in export growth nurtured a belief that a policy-induced recovery that had snapped seven straight quarters of weakening expansion in Q4 would accelerate again.

China's full-year annual growth of 7.8 percent in 2012 was the weakest since 1999.

Other data released alongside GDP showed industrial output grew 8.9 percent in March from a year ago, versus expectations of 10.0 percent showed in the Reuters poll.

Retail sales in March rose 12.6 percent on a year ago versus an estimated 12.5 percent in the Reuters poll.

Fixed-asset investment grew 20.9 percent in the first quarter from a year earlier, versus an expected 21.3 percent. The government only publishes cumulative investment data.

Trader's highlight

DJI - NEW YORK, April 15 (Reuters) - Investors dumped commodities and stocks on Monday in a broad selloff that gave gold its worst two-day loss in 30 years after weak demand figures from China fanned concerns the world economy is stumbling.

With the market already vulnerable, U.S. stocks extended losses late in the session after two explosions struck near the Boston Marathon finish line. Boston police said the blasts killed two people and injured 23. 

China's recovery unexpectedly stumbled in the first three months of 2013, as it reported its annual growth rate eased to 7.7 percent from 7.9 percent in the final quarter of last year. Economists had forecast 8 percent growth. 

Industrial output in China in March also undershot expectations and added to investor sensitivity after recent disappointing economic data out of the United States.

A U.S. regional manufacturing report on Monday showed the pace of growth slowed, the latest data to suggest the world's biggest economy lost some steam heading into the second quarter.

"If we see this kind of liquidation again, the equity market will follow. Then we’ll have a real problem," said Frank Cholly, Jr., senior commodities broker at R.J. O’Brien and Associates in Chicago.

"If we turn into a bear market and this isn’t just a correction, sentiment may really sour. There is no one buying and picking a bottom yet."

The Dow Jones industrial average dropped 265.86 points, or 1.79 percent, to close at 14,599.20. The Standard & Poor's 500 Index lost 36.49 points, or 2.30 percent, to end at 1,552.36. The Nasdaq Composite Index  fell 78.46 points, or 2.38 percent, to 3,216.49.

"The adverse feedback loop of all these things ... that's spilling over to stocks and that's something most investors don't want to get in front of. So we've seen selling really dominate the day today," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Oils - NEW YORK, April 15 (Reuters) - Brent crude oil fell by almost 3 percent to near $100 a barrel on Monday, extending a two-week selloff that has sliced nearly 10 percent off prices, as part of a wider flight by investors from commodities.

Gold posted its biggest two-day loss in 30 years while Brent crude fell for the eighth time in 10 sessions in what analysts said were indications that a host of weak fundamental signals dominated sentiment.

In the United States, crude oil stockpiles have ballooned to a 30-year high as domestic output surges, with no end in sight. Global demand has struggled due to economic uncertainty in top consuming nations.

Against the background of weaker fundamentals, lower-than-expected GDP growth from No. 2 oil consumer China rattled the commodity complex further on Monday and pushed Brent to near $100 a barrel for the first time since July 2012.

The Brent contract for May delivery, which expired on Monday, traded as low as $100.02 a barrel in early U.S. activity before settling down $2.72 at $100.39 a barrel.

Meanwhile, the contract for June delivery fell below $100 a barrel for the first time since July, extending its sell-off in post settlement trading to as low as $99.12 a barrel.

Over the past 10 sessions, Brent prices have dropped by 10 percent, sending the contract to just over 26 on the 14-day Relative Strength Index. Commodities are generally considered oversold if they dip below 30 on that index.

U.S. crude settled down $2.58 at $88.71 a barrel, hitting the lowest level since mid-December in heavy trading, with volumes 47 percent above the 30-day moving average.

"The selloff is long overdue and is a reflection of weakness in the market that everyone had been perceiving," said Edward Morse, global head of commodities research at Citigroup.

CBOT Soybean - April 15 (Reuters) - Soybean futures on the Chicago Board of Trade fell on Monday on spillover weakness from a broad-based sell-off in commodities, traders said.

• May soybeans ended lower, reversing after rallying to a two-week high, but still gained relative to back months on spreads. Nearbys underpinned by tight U.S. soy supplies and firm cash markets. The inverted May/November spread peaked at $1.99-1/2, its highest level since mid-March.

• The U.S. soybean crush rose marginally to 137.08 million bushels in March, in line with forecasts for a slight gain from 136.3 million bushels in February, National Oilseed Processors Association data showed.

• CBOT soyoil plunged 2 percent, pressured by NOPA reporting the March U.S. soybean oil yield as the highest on records dating to 2002, at 11.94 lbs per bushel.

• USDA reported export inspections of U.S. soybeans at 4.813 million bushels, far below trade expectations for 13 million to 16 million.

• Basis bids for soybeans shipped by barge to the U.S. Gulf Coast were steady to firm early Monday on tight old-crop supplies and a lack of farmer selling. 

• Farmers in China plan to continue growing more rice and corn in 2013, while reducing the area devoted to cotton and soybeans, the National Bureau of Statistics said. 

BMD CPO - SINGAPORE, April 15 (Reuters) - Malaysian palm oil futures fell to a 4-month low on Monday, hurt by easing exports and disappointing Chinese data that raised concerns about the outlook for global commodity demand.

Slower-than-expected economic growth in China, the world's second-largest economy, triggered broad-based selloffs in commodities markets such as gold and crude oil.

The most active soybean oil contract in Dalian tumbled to the lowest since its initiation last September, putting further pressure on palm oil especially after cargo surveyor Intertek Testing Services reported slower exports for the first half of April compared to the same period a month ago.

"Exports were slower than expected, but the market is also affected by the poor performance in other commodities," said a trader with local commodities brokerage in Malaysia. "If the global economy is not good, the buying strength won't be there."

The benchmark June contract  on the Bursa Malaysia Derivatives Exchange lost 2.2 percent to close at 2,294 ringgit ($755) per tonne. Prices earlier fell to 2,281 ringgit, the lowest seen since Dec. 14.

Total traded volumes stood at 37,179 lots of 25 tonnes each, higher than the average 35,000 lots.

China's economy grew 7.7 percent in the first quarter, undershooting market expectations for an 8.0 percent expansion and frustrating investors hoping the economy would rebound after posting its weakest growth in 13 years in 2012.

On top of that, persisting worries that a bird flu outbreak in China could hurt soy demand also weighed on vegetable oil markets, with the most active September soybean oil contract on the Dalian Commodities Exchange falling by as much as 2.5 percent.

Soyoil is a close competitor of palm oil and a fall in prices of the former could wean away demand from the latter.

Malaysia, the world's No.2 palm oil producer, will set its crude palm oil export tax for May at 4.5 percent, unchanged from April, a government circular showed on Monday.

Official data showed that stocks in the southeast Asian country posted a higher-than-expected decline to 2.17 million tonnes in March, helped by a 10 percent increase in exports.

In other markets, Brent crude oil sank below $101 a barrel on Monday to a nine-month low after bleak Chinese and U.S. data stoked worries of a slowdown in economic growth in the world's top oil consumers. 

Regional Equities - JAKARTA, April 15 (Reuters) - Southeast Asian stock markets closed down on Monday on concerns over the U.S. economic outlook and weaker-than-expected Chinese data, with Indonesian and Philippine shares falling more than 0.7 percent.

The MSCI's broadest index of Asia-Pacific shares outside Japan  was down 0.95 percent.

The World Bank slightly scaled back its 2013 growth forecasts for emerging East Asia and warned about possible over-heating in the region's larger economies, but the global lender said the Bank of Japan's sweeping monetary expansion should provide a fillip to developing countries.

The Jakarta Composite Index fell 0.86 percent to 4,894.59, led by banking stocks such as Bank Central Asia and Bank Mandiri  Philippine stocks slid 0.78 percent.

Malaysia stocks ended nearly flat, while the Straits Times Index  was down 0.3 percent with media and property firm Singapore Press Holdings Ltd  as the worst performer.

China First-Quarter Growth Trails Estimates as Risks Loom

China’s economic growth unexpectedly eased in the first quarter as factory-output gains weakened, a sign the nation’s recovery from the slowest expansion in 13 years has lost momentum.

Gross domestic product rose 7.7 percent from a year earlier, the National Bureau of Statistics said in Beijing today. That compares with the 8 percent median forecast in a Bloomberg News survey of 41 analysts and 7.9 percent in the fourth quarter. March industrial production gained less than estimated while retail-sales growth matched forecasts.

Full text : http://www.bloomberg.com/news/2013-04-15/china-s-economy-grew-less-than-estimated-7-7-in-first-quarter.html

RTRS - India's March palm oil imports fall for 2nd month in a row

NEW DELHI, April 12 (Reuters) - India's imports of palm oil fell for a second straight month in March as domestic supply improved and purchases by the world's biggest buyer continued to suffer from an import levy imposed in January.

India, the world's biggest importer of vegetable oils, buys mainly palm oil from Malaysia and Indonesia and a small quantity of soyoil from Brazil and Argentina.

Palm oil imports dropped 12 percent to 708,262 tonnes in March, Mumbai-based trade body the Solvent Extractors' Association, said in a monthly update.

Imports of all vegetable oils, including non-edible oils, fell 7.5 percent to 896,714 tonnes in March, pulled down by the drop in palm oil imports, the data showed.

Higher domestic cooking oil supplies, as the rapeseed harvest season peaked last month, helped to curb imports. Rapeseed is the main oilseed crop grown in winter.

Buyers also drew on stockpiles, as import prices rose.

Stockpiles of edible oil at ports fell nearly nine percent during March to 850,000 tonnes, the trade body said, off a record of 930,000 tonnes on March 1.

"Stocks were still on the higher side despite the decline in monthly imports," said B.V. Mehta, executive director of the SEA.

Mehta said overall stocks -- including those in transit from ports to refineries -- could depress domestic prices before the summer oilseed planting season. Total stocks had edged up to an all-time record of 2.1 million tonnes by April 1.

Traders said the high level of stocks, both at ports and in transit, could keep imports capped between 800,000 and 885,000 tonnes for the current month.

India's imports of palm oil hit an all-time high in January as leading producers Indonesia and Malaysia made exports more attractive by varying tax levels.

To protect domestic refiners and oilseed growers, India retaliated with a duty of 2.5 percent on crude palm oil in the second half of January, which had hit imports in February.

On March 21, Malaysian palm oil futures touched their highest since Feb. 25, making imports more costly.

India imports about 60 percent of its cooking oil needs of 17 million tonnes. Palm oil makes up nearly 80 percent of that. In 2011/12, the country imported 10 million tonnes of cooking oil.

India's demand for cooking oils is rising as its population grows and becomes better off. New Delhi tries to encourage domestic oilseed production, partly by guaranteeing minimum prices to farmers, but has had limited success.

Soyoil imports also declined a quarter to 46,990 tonnes last month, as demand faded at the tail end of the marriage season.

RTRS - COMMODITIES-Gold, oil, copper fall sharply on economic woes

NEW YORK, April 12 (Reuters) - Major commodity markets fell sharply on Friday, with oil tumbling to a nine-month low and gold hitting a 20-month low as investors dumped the commodities on worries about a weak global economic outlook and a plan for Cyprus to sell gold reserves.

Spot gold  fell more than 4 percent, hitting a session low of $1,493.35 an ounce, the lowest since July 2011.

U.S. gold for June delivery  fell to a session low of $1,491.40 an ounce. 

Gold entered bear market territory, dipping below $1,500 an ounce, or more than 20 percent from its peak of more than $1,900 an ounce in September 2011.

Cyprus may need to sell gold to raise money to fund a portion of its bailout, the cost of which has grown to 23 billion euros.

"The news on Cyprus' possible gold sale puts the focus back on the fact that many central banks in the developed world have been selling gold in the past few decades and they are still not so keen to hold gold as they used to be," Danske Bank analyst Christin Tuxen said.

Trader's highlight

NEW YORK, April 12 (Reuters) - U.S. stocks closed slightly lower on Friday, retreating from the previous session's record highs on a drop in financial shares, but major indexes had the biggest weekly gains since the first week of the year.

Shares pared losses in the final hour of trading, with the Dow helped by a rally in Home Depot. For the week, the S&P 500 rose 2.3 percent while the Nasdaq rose 2.8 percent. It was the best weekly gain for both since the first week of the year. The Dow rose 2.1 percent.

Financial stocks were pressured on Friday by a pair of disappointing bank results and a delay in closing a large bank deal.

Weak retail sales and consumer sentiment data, suggesting the economy lost momenturm, also weighed on stocks.

The string of discouraging data indicates that equities could be vulnerable to a pullback, especially following a rally that has taken the S&P 500 up 11.4 percent so far this year. Telecom and healthcare, two defensive groups, were among the few S&P sectors in positive territory.

"We're due for choppiness, given the run we've had, especially since the strong data we've seen recently looks increasingly misleading," said Hank Herrmann, chief executive of Waddell & Reed Financial Inc in Overland Park, Kansas.

"We're moving at a slower pace, and those who got overly excited about GDP growth are probably pulling in their horns a bit."

"The numbers weren’t terrible, but also not terribly inspiring," said Herrmann, who helps oversee $105 billion in assets. "I wanted to see more credit growth as confirmation that the economy is doing better and that didn’t show up."

The Dow Jones industrial average was down 0.08 points, or 0.00 percent, at 14,865.06. The Standard & Poor's 500 Index was down 4.51 points, or 0.28 percent, at 1,588.86. The Nasdaq Composite Index was down 5.21 points, or 0.16 percent, at 3,294.95.

Oils - NEW YORK, April 12 (Reuters) - Brent crude oil fell to a nine-month low near $101 a barrel on Friday as a broad investor sell-off in commodities triggered a fall as much as $3 a barrel, but the global oil benchmark pared losses in afternoon New York trade as bargain hunters emerged.

The cross-commodity rout started in gold on Friday after the precious metal fell below $1,500 an ounce for the first time since July 2011. An unexpected contraction in U.S. retail sales added to pressure on oil, grains and metals as investors moved into cash.

Brent found some support in the afternoon as traders started buying the global benchmark while selling U.S. crude oil, traders said, on news of a large increase of Canadian crude oil flows into Cushing, Oklahoma, delivery point.

In early trade, Brent crude for May delivery fell more than $3 a barrel to hit a $101.09, the lowest prices since July. It recovered by more than $2 by the close, settling at $103.11 a barrel, down $1.16 on the day. Brent has fallen by around 13 percent since February as uncertainty about the strength of global demand has mounted.

U.S. crude for May delivery lost $2.22 a barrel to settle at $91.29 a barrel, up from an earlier low of $90.27 a barrel. The May contract closed below its 200-day moving average of $91.51 a barrel, a key technical indicator watched by traders.

"There's an underlying anxiety in the crude market about demand growth going forward into the second half of the year," said Andy Lebow, vice president at Jefferies Bache in New York.

"Gold came off and industrials are really getting hit today. That's part and parcel of the anxiety over global demand growth."

The spread between Brent crude and U.S. crude widened to around $12 a barrel Friday afternoon as U.S. crude prices were pressured by reports of increased flows into the U.S. oil contract delivery hub at Cushing, Oklahoma.

CBOT Soybean - April 12 (Reuters) - Chicago Board of Trade soybean futures rose for a second straight session on Friday on tight supplies of old-crop U.S. soybeans, traders said.

• The inverted July/November spread widened to a two-week high at $1.53-1/4, premium July. Concerns about dwindling old-crop supplies lifted July, while ideas that planting delays could shift more 2013 U.S. acres into soybeans pressured new-crop November.

• Soymeal followed soybeans higher, with talk of European demand for U.S. soymeal adding support.

• Soyoil pressured by spillover weakness from crude oil and meal/oil spreading.

• Gains in soybeans limited by overall weakness in the commodities sector, with crude oil and gold pressured by a weak global economic outlook and a plan for Cyprus to sell gold reserves.

• The National Oilseed Processors Association's monthly soybean crush data scheduled for release on Monday should show the U.S. crush for March at 136.8 million bushels, a Reuters survey showed. NOPA reported the year-ago crush for March 2012 at 140.534 million bushels and the February 2013 crush at 136.322 million bushels.

• USDA said private exporters reported sales of 110,000 tonnes of U.S. soybeans to unknown destinations for delivery in 2013/14.

• Wet and cold weather in the U.S. crop belt next week will continue to stall spring corn plantings but also will add valuable soil moisture - meteorologist.

• Argentina's agriculture ministry said the country's soybean harvest was 25 percent complete but behind the year-ago pace of 30 percent.

• For the week, spot CBOT soybeans rose 51-1/4 cents, or 3.8 percent, their biggest weekly rise since August. Soymeal rose 2.1 percent, halting a two-week slide. Spot soyoil  rose 0.8 percent. 

BMD CPO - KUALA LUMPUR, April 12 (Reuters) - Malaysian palm oil futures dropped to a near two-week low in choppy trade on Friday, with no clear guidance from overseas markets and investors worried a bird flu outbreak in China could crimp demand from the world's second largest edible oil buyer.

Investors and analysts said an escalation of the H7N9 bird flu outbreak in eastern China, where the death toll has hit 10 victims, could spark a potential slowdown in feed demand and negatively affect commodities, including palm oil.

"Soybean is one of the key ingredients in chicken feed and China is among the world's biggest grains buyer," Phillip Futures said in a note on Friday. "If H7N9 gets much (more) serious, commodities market might be affected."

The benchmark June contract  on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to 2,345 ringgit ($770) per tonne by Friday's close, posting its third straight weekly loss with a decline of 0.6 percent this week. Prices were rangebound between 2,336 and 2,367 ringgit, touching a low unseen since April 1.

Total traded volumes were thin at 23,752 lots of 25 tonnes each, compared to the average 35,000 lots.

Traders were also slightly anxious that bullish inventory and export data in March could mean palm oil stocks are bottoming out in Malaysia, the No.2 producer of the tropical oil, and higher stockpiles could return in the coming months.

Official data on Wednesday showed that stocks in the southeast Asian country declined a steeper than expected 10.9 percent in March to 2.17 million tonnes, from 2.43 tonnes in February.

"The market is stuck in a tight range. There is minimum movement in overseas markets, and at the same time the Dalian is down slightly -- there's (also) a bit of worry about the bird flu in China," said a trader with a foreign commodities brokerage in Kuala Lumpur.

In other markets, Brent crude oil sank to an eight-month low under $103 a barrel on Friday as the outlook for global oil demand growth dimmed, although an improvement in U.S. jobs data put a floor under prices.

In vegetable oil markets, U.S. soyoil for May delivery was almost flat in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange fell 0.7 percent.

Regional Equities - BANGKOK, April 12 (Reuters) - Thai benchmark stock index hit a one-week high on Friday after the Bank of Thailand raised its 2013 economic growth forecast, while Malaysia's main index slipped into negative territory after institutional-led selling.

Most other Southeast Asian stock markets finished off their day's highs, tracking Asian shares which retreated after recent gains.

Bangkok's SET index  rose 0.7 percent to 1,527.32, the highest close since April 4. Demand for dividend-yielding stocks sent top mobile phone operator Advanced Info Service Pcl  to a record close of 257 baht, up 5.8 percent.

Thailand's central bank raised its 2013 economic growth forecast to 5.1 percent from 4.9 percent on Friday. 

The SET index outperformed the region on the week, up 2.5 percent, slightly ahead of the Philippines' 2.4 percent. Philippine index ended the week at a record closing high of 6,891.43, led by big caps such as SM Investments Corp

Trading volume of Thai stock market halved the full day average over the past 30 sessions ahead of a four-day weekend. The exchange will be closed on April 15-16 for holidays, reopening on April 17.

Malaysia's main index  fell 0.5 percent to 1,698.53, with local institutions selling a net 253 million ringgit ($83.36 million) while foreign investors buying a net 223 million ringgit ($73.48 million), stock exchange data showed.

Foreign investors are increasingly upbeat on Malaysian equities in the run-up to the country's election on May 5.