RTRS - China cancels 600,000 T US soy, adds pressure on prices

BEIJING/SINGAPORE, Nov 16 (Reuters) - Chinese importers have canceled orders for about 600,000 tonnes of U.S. soybeans, an official think-tank said on Friday, as weak domestic demand and a recent drop in prices made these purchases unprofitable.

The cancellation of cargoes by China, the world's top buyer, will weigh on Chicago futures which have already dropped more than 20 percent since hitting a record high of $17.94-3/4 a bushel on Sept. 5.

The China National Grain and Oils Information Center (CNGOIC) did not say when the orders, equivalent to 10 cargoes, were canceled but said they were for delivery in December and January, indicating that they had been booked long before the recent drop in prices.

"Crush margins in China are under pressure. Prices have come down significantly from the highs and beans that were bought when prices were $2 or $3 (per bushel) higher may not work in the current product price environment," said Anne Frick, oilseeds analyst with Jefferies Bache.

"There probably was some component of insurance buying in case of problems in South America, but weather is looking a little more favorable for the South American crop," she said.

EXPENSIVE BEANS, NEGATIVE MARGINS

The increase in import prices has contributed to the losses of the soybean crushing industry, which is also grappling with overcapacity and a decline in domestic demand for products such as soyoil and soymeal.

"Crushers are running at a heavy loss while domestic demand for soyoil and meal remains sluggish, and this situation may not improve later," the CNGOIC said in report

Beijing's stockpiling of domestic soybeans and a poor harvest have pushed up prices of local soybeans, forcing some crushers in the northeast to close down their plants for more than 15 days a month.

Chinese processors are trying to get out of the import deals as they had bought before prices started declining, traders said.

The CNGOIC report estimated China's 2012 soy imports at a record high of 58 million tonnes, a 10 percent increase from a year ago. December and November imports were expected to rise to a higher-than-expected 10 million tonnes, the CNGOIC said.

Trader's Highlight

DJI - NEW YORK, Nov 16 (Reuters) - U.S. stock markets ended higher on Friday on hopes that politicians would find common ground to steer clear of the "fiscal cliff" that would hurt the U.S. economy, while escalating tensions in the Middle East boosted oil prices.

But shares on major markets still posted a second consecutive weekly loss as the collective worry about the U.S. government's fiscal problems and weak global economic growth weighed on sentiment.

Investors have been concerned that if no deal were reached to modify automatic spending cuts and tax hikes, the U.S. economy could slip into recession. The S&P 500 has dropped about 4 percent over the past two weeks, in part due to these worries.

NYMEX - NEW YORK, Nov 16 (Reuters) - Expiring U.S. December crude futures rose on Friday as the escalating conflict between Israel and Palestinians in Gaza reinforced concerns about supply in the Middle East and as a Gulf of Mexico energy platform fire also helped boost prices.

CBOT SOYBEAN - U.S. soybean futures dropped 1.3 percent to a five-month low after the world's top importer of the oilseed canceled deals to import some U.S. supplies, traders said.

* For the week, the benchmark Chicago Board of Trade January soybean futures contract dropped 4.7 percent, its third straight week of declines.

• During the past three weeks, soybean prices have shed 11.4 percent.
• Chinese importers canceled orders for about 600,000 tonnes of U.S. soybeans due to weak domestic demand and recent price declines, the China National Grain and Oils Information Center said.
• The U.S. Agriculture Department said on Friday morning that weekly export sales of soybeans were 585,200 tonnes, topping forecasts for 250,000 to 550,000 tonnes and up from 191,900 tonnes a week ago. 

FCPO - SINGAPORE, Nov 16 (Reuters) - Malaysian palm oil futures slipped on Friday, despite posting a weekly gain of close to 5 percent, as traders booked profits from a large increase in the previous session, and slowing exports squeezed prices.

"The market came down a bit as there was some profit-taking," a trader with a foreign commodities brokerage in Malaysia said, adding that prices seemed to be trading in a broad range of 2,300 to 2,500 ringgit. "Exports were also down and that could be another reason."

Exports of Malaysian palm oil products for Nov. 1 to 15 fell 0.1 percent to 769,087 tonnes from 769,534 tonnes for the Oct. 1-15 period, cargo surveyor Intertek Testing Services said on Friday.

That came as a disappointment after exports rose as much as 22 percent for the Nov. 1-10 period from a month ago, although some traders traced the slowdown to a slew of holidays this week.

Market players are also closely monitoring a French proposal of a fourfold tax increase on palm oil in food, which stirred opposition from foodmakers and industry groups in top producers Indonesia and Malaysia.

Regional Equties - Nov 15 (Reuters) - Thai stocks recovered from a seven-week low on Friday while other major Southeast Asian stock markets ended weaker-to-flat as global economic concerns led by the U.S. 'fiscal cliff' and the eurozone debt crisis weighed on the region's risky assets.

RTRS- Argentine soy area expands as world demand soars

BUENOS AIRES, Nov 15 (Reuters) - Argentine farmers will increase soy planting by almost 4 percent as the South American grains powerhouse moves to bolster world food supplies hit by a year of bad global crop weather, the government said on Thursday.

In its first soybean area estimate of the 2012/13 season, the Agriculture Ministry said 19.4 million hectares will be sown in the weeks ahead versus 18.7 million hectares in 2011/12.

Tight grains stocks after a year of dry farm weather from Iowa to southern Russia to Australia may push prices to record highs as traders wait to see if upcoming harvests will be big enough to stave off a full-blown supply crisis.

Chicago soybean futures have already risen 18 percent this year, with corn up 12 percent and wheat up 31 percent. Sharp food price increases have serious implications for the global economy, driving up inflation at a time when consumers in many developed countries are struggling with rising unemployment.

Argentina is the world's No. 3 soybean exporter after Brazil and the United States. The country, also a top corn and wheat supplier, is key to bolstering world food stocks.

The United Nations predicts global food demand will double by 2050. South America is being counted on to provide most of the increase in world grains production between now and then.

While most industry analysts say Argentine soy plantings will rise this year, growers are struggling to keep early seeding on schedule because of flooding caused by months of heavier-than-normal rains.

"Soybean planting started late this year in Argentina and lags last year's tempo by 18 percentage points," the ministry said in its weekly crop report.

Farmers in the main agricultural province of Buenos Aires have watched their heavy seeding machines get stuck in the mud after a series of storms started lashing the Pampas in August.

"Rains and continued weather instability have caused flooding in fields that growers had set aside for soybeans," the report said, adding that sunny weather during the past week has allowed seeding to start as flood waters recede.

 

The U.S. Department of Agriculture expects Argentina to harvest 55 million tonnes of soy, 11.5 million tonnes of wheat and 28 million tonnes of corn in the 2012/13 crop year.

Supply from Argentina is of key interest to exporters such as Bunge Ltd BG.N and Noble Group Ltd NOBG.SI that operate huge grains terminals along the Parana River, which offers access to the busy shipping lanes of the South Atlantic.

In its weekly crop report Thursday, the Buenos Aires Grains Exchange said farmers had so far seeded 22 percent of the estimated soy area of 19.7 million hectares. The pace lags last year's by 15.4 percentage points, it said.

With regard to commercial-use corn, 45 percent of the 3.4 million hectares expected to be planted this year have been seeded, according to exchange data, lagging last year's tempo by 17 percentage points.

Farmers have collected 15 percent of 2012/13 wheat, progressing by 2.5 percentage points during the week and slightly ahead of last season's harvesting pace, the exchange said.

RTRS- India Oct refined palm oil imports down 45 pct m/m

NEW DELHI, Nov 15 (Reuters) - India's imports of refined palm oil fell sharply in October from the previous month, as an import duty hike aimed at protecting the local refining industry from cheaper Indonesian supplies of the edible oil took effect.

India, the world's largest buyer of vegetable oils, imported 61,544 tonnes of refined palm oil in October, according to trade data released on Thursday, a decline of 45 percent from 111,163 tonnes in September.

"Refined palm oil imports fell on fading festive season demand, while the increase in the cost of imports due to a duty hike supported the lower monthly imports," said Naveen Garg, a Delhi-based trade analyst.

A Reuters survey had forecast average vegetable oil imports of 923,125 tonnes in October, with 65,625 tonnes of refined palm oils.

India's refined palm oil imports rose 46 percent to 1.6 million tonnes in the marketing year 2011/12 after top producer Indonesia changed its tax structure in October last year in an attempt to promote its processing industries.

Total vegetable oil imports in October were 1,036,107 tonnes, up from 993,912 tonnes in the previous month, the Solvent Extractors' Association (SEA) said in a statement.

The surge in refined palm oil imports pushed total vegetable oil imports 17.2 percent to a record high of 10.2 million tonnes in the year to October.

India buys mainly palm oil from Indonesia and Malaysia. It also imports a small quantity of soyoil from Brazil and Argentina.

In 2011/12, India's palm oil imports stood at 7.7 million tonnes while soyoil imports stood at 1.1 million tonnes.

Traders said India's vegetable oil imports are expected to rise for the second straight year to about 10.7 million tonnes in 2012/13, up 4.9 percent from a year ago.

"The higher import projection is based on increasing demand and low domestic supplies," said Sandeep Bajoria, chief executive of the Mumbai-based Sunvin Group.

A population that is growing at the rate of about 19 million people a year, along with an increasingly wealthy middle class, support higher demand.

"I see at least half a million tonne rise in the vegetable oil imports during 2012/13," Bajoria said.

Trader's Highlight

DJI- NEW YORK, Nov 15 (Reuters) - U.S. stocks were little changed on Thursday as the prospect of a drawn-out battle over impending tax and spending changes made investors wary of getting into the water, while retailer Wal-Mart tumbled after disappointing sales.

The S&P 500 is down nearly 2 percent for the week, adding to last week's selloff and eroding more of the market's gains for the year.

What had looked like a stellar 2012 for stocks has turned into merely an average year, and as 2012 draws to a close, investors are becoming more inclined to protect the gains they have.

The worry is the economy could contract again if no deal is reached in Washington to avoid the "fiscal cliff" - large, automatic budget cuts and tax hikes that begin to take effect in the new year.

Combined with the euro zone debt crisis, the uncertain outlook for corporations makes it hard to know how much a stock is worth, said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.

"Valuation is going to be uncertain because you don't know what the growth will be," said Lancz. "That is definitely not a good scenario for someone to step up to the plate and do a lot of buying."

The euro zone relapsed into its second recession since 2009 in the third quarter as the region was hurt by its debt problems.

Wal-Mart WMT.N fell 3.6 percent to $68.72 and was the biggest drag on the Dow as frugal consumers hurt the company's quarterly sales.

Investors will be watching Friday's meeting at the White House between President Barack Obama and Republican and Democratic leaders of Congress over deficit reduction for any sign the two sides are moving closer.

The memory of last year's political impasse over raising the debt ceiling has also made analysts nervous.

"(There is) uncertainty of whether we're going to have a functioning government going forward. That is a weight that sits on markets right now," said Troy Logan, managing director and senior economist at Warren Financial Service in Exton, Pennsylvania.

Even if the economy avoids an outright recession, there are fears a lengthy political dispute could sap business investment and consumer spending.

The Dow Jones industrial average .DJI slipped 28.49 points, or 0.23 percent, to 12,542.46. The Standard & Poor's 500 Index .SPX lost 2.16 points, or 0.16 percent, to 1,353.33. The Nasdaq Composite Index .IXIC was off 9.87 points, or 0.35 percent, to 2,836.94.

The S&P 500 sunk to a 3 1/2-month closing low and was well below its 200-day moving average, which it pierced last week.

Data on Thursday showed new claims for unemployment benefits surged last week, while factory activity in the mid-Atlantic region unexpectedly shrank in November as the economy felt the effects of superstorm Sandy.

A flare-up in violence in the Middle East added to market unease as Israeli warplanes bombed targets in and around Gaza city for a second day, while two rockets fired from the Gaza Strip targeted Tel Aviv.

Apple Inc shares AAPL.O dragged the Nasdaq lower, falling 2.1 percent to $525.62 and down about 25 percent since September's high.

Also in the tech sector, shares of Dell Inc DELL.O fell in after-hours trading after it reported revenue that was shy of Wall Street's expectations. Dell was down 2.2 percent at $9.35.

Volume was roughly 7.26 billion shares on the New York Stock Exchange, the Nasdaq and the NYSE MKT, topping the year-to-date average daily closing volume of around 6.5 billion.

Decliners outnumbered advancers on the NYSE by 2,069 to 975 on the New York Stock Exchange. Decliners also had the upper hand on the Nasdaq, outpacing advancers 1,506 to 948.

NYMEX- NEW YORK, Nov 15 (Reuters) - U.S. crude futures fell Thursday as weak data stoked worries about demand in a sputtering economy and countered any bullish effect from concerns about escalating violence in the Middle East.

U.S. crude oil inventories rose last week, the Energy Information Administration (EIA) said in its weekly report released on Thursday.

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell, halting a two-day rally on long liquidation tied to worries about the U.S. "fiscal cliff," and satisfactory crop weather in South America,

traders said.

* Grain markets and Wall Street sagged as investors fretted that the economy could slip into recession if no deal is reached to avoid the "fiscal cliff" - some $600 billion in spending cuts and tax hikes due to begin taking effect in January. .N

• Also, the euro zone debt crisis dragged the bloc into its second recession since 2009 in the third quarter despite modest growth in Germany and France, data showed.

• CBOT soymeal and soyoil followed soybeans lower but soyoil was underpinned by fresh U.S. export sales.

• USDA confirmed sales of 32,000 tonnes of U.S. soyoil to unknown destinations for 2012/13 delivery. It was the second sale of soyoil to unknown destinations in two days, after USDA announced sales of 40,000 tonnes on Wednesday.

• Trade expects USDA's holiday-delayed export sales report on Friday to show weekly sales of U.S. soybeans at 250,000 to 550,000 tonnes, soymeal sales at 150,000 to 250,000 tonnes and soyoil sales at 20,000 to 50,000 tonnes.

• Drier weather in Argentina has helped boost crop seedings but another round of rain is expected next week, Commodity Weather Group meteorologist Joel Widenor said.

• In Brazil, frequent rains in the north will aid crop growth, Widenor said. There will be at least three shower chances from early next week through the end of the 15-day period in central and southern areas as well, he said.

• Argentine soy plantings should reach 19.4 million hectares this season, up from 18.7 million a year ago, the Agriculture Ministry said in a weekly crop report.

FCPO- SINGAPORE, Nov 14 (Reuters) - Malaysian palm oil futures posted on Wednesday the highest daily gain since October 2010, lifted by a slowdown in inventory build-up in the world's second largest producer and a demand recovery for the edible oil.

Malaysia's October palm oil stocks inched up 1.1 percent to a record 2.51 million tonnes, but the rise fell short of market expectations of a 7.5 percent rise in stocks to 2.67 million tonnes.

Cargo surveyor data pointed to a demand recovery as palm oil's steep $300 discount to soybean oil has encouraged some buyers to shift to the cheaper edible oil and Nov. 1-10 exports rose as much as 22 percent from a month ago.

"We expect the lower crude palm oil price and the substantial discount to soybean oil price would stimulate export demand in the months ahead," James Ratnam, an analyst with Malaysia's TA Securities, said in a research note.

"But historically, it would take 3 to 6 months for low prices to incentivise stocks drawdown, and hence, we expect any inventory normalisation and therefore firmer prices will only materialise in the first quarter next year at the earliest."

At the close, the benchmark January contract FCPOc3 on the Bursa Malaysia Derivatives Exchange posted a 4.4 percent gain at 2,425 ringgit ($792) per tonne. Prices fell to a 3-year low at 2,220 ringgit on Monday, but rebounded strongly after the release of the October stocks data.

Total traded volumes surged to 33,855 lots of 25 tonnes each after a quiet morning session ahead of the Islamic New Year holiday in Malaysia on Thursday.

Palm oil is expected to keep rebounding to 2,447 ringgit per tonne, said Reuters market analyst Wang Tao based on a wave cycle analysis.

In a bullish sign for palm oil, Brent crude rose on Wednesday after earlier declines on lower demand outlook for the fourth quarter and amid a rebound in oil exports from sanctions-hit Iran.

In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 edged up 1.7 percent in late Asian trade. The most active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.5 percent higher.

REGIONAL EQUITY- Nov 15 (Reuters) - All Southeast Asian stock markets fell on Thursday with Singapore hitting a four-month low, as investors sold off the region's risky assets on concerns about the possibility of drawn-out negotiations to resolve the U.S. 'fiscal cliff'.

Thailand .SETI, the region's best performing market, fell 0.4 percent to hit a seven-week low, while Singapore .FTSTI closed 1.1 percent weaker to its lowest close since July 9. The Philippines .PSI and Vietnam .VNI lost 0.7 percent and 0.2 percent respectively.

"Investors are worried about the U.S. fiscal cliff and debt crisis in Greece," said Teerada Charnyingyong, strategist at Bangkok-based broker Phillip Securities.

Investors fear that the package of U.S. tax increases and spending cuts mandated to come into force next year if a deal is not agreed - the so-called "fiscal cliff" - will pitch the world's biggest economy back into recession, dealing a fresh blow to the fragile global economy.

Stock markets in Indonesia .JKSE and Malaysia .KLSE were closed.

RTRS- China palm oil traders stock up ahead of tighter quality norms

SINGAPORE, Nov 14 (Reuters) - Buyers from China, the world's second largest importer of palm oil, are rushing to stock up on the refined variant in the last quarter of this year before stricter quality measures set by Beijing take effect on Jan. 1 next year, traders said.

China announced its plans for the grade, used mainly in cooking oil, in July, but official websites gave few details. Traders in China and Southeast Asia said the rules may ask for lower values of stearic acid and peroxide in palm oil cargoes.

Higher-than-usual values of stearic acid in palm oil can cause health problems while peroxide value measures rancidity to tell how long the edible oil can last in storage, traders said.

"We see more buying now because nobody really knows what is going to happen when the rules take effect next year," said a Singapore-based palm oil trader. "We just have to wait for the first cargo to enter the country and see what happens."

Refined palm oil, which has higher stearic acid levels than competitors such as soyoil and rapeseed oil, will be the most affected by the new quality standard, traders in China said.

Chinese buyers have stepped up palm oil imports since October, with imports in November and December set to grow above 700,000 tonnes each month, traders said.

That represents an increase of at least 8.5 percent over the last two months of 2011, customs data show, when China imported a total of 1,290,000 tonnes.

Edible oil imports that fail the new standards will have to be refined further before they can be sold.

“It would increase costs and you have to find refiners to do it for you,” said an industry analyst in China, who declined to be named because he is not authorised to speak to the media.

China, the world's second-largest importer of palm oil after India, consumed close to 6 million tonnes of the commodity in 2011, taken mostly from top producers Indonesia and Malaysia.

But palm oil shipments were down 1.7 percent by September from a year earlier, at 4.1 million tonnes, customs data showed.

CHINA SPOILS INDONESIA'S PLANS?

The new rules could give greater importance to crude grades a year after top palm producer Indonesia cut export taxes for refined palm oil in a bid to grow processing capacity. Industry groups expect Indonesian refining capacity to rise 21 percent to 25 million tonnes by the end of 2012.

Industry analyst Dorab Mistry, the head of edible oil trading at Indian conglomerate Godrej Industries GODI.NS, said Beijing's move signalled that China would import more crude palm oil than refined cargoes, in a manner similar to India.

"From Jan. 1, 2013, China is introducing extremely stringent specifications for refined palm olein," he told an industry conference in China last week. "This probably has something to do with food safety, which is a matter of great importance to the Chinese government."

The bottom line is that costs will start to rise if refined palm oil is imported and has to be refined again. This scenario could see buyers just bring in crude palm oil cargoes to be refined in China at a cheaper price.

"We may see an initial 5 to 10 percent decrease in China palm oil imports once the new regulation kicks in," said one Shanghai-based oils analyst.

"But it will only affect refined palm oil intended for food use. Imports of crude for industrial use should not be affected."

Palm oil stocks in China are climbing swiftly towards 800,000 tonnes, the analyst added, as traders buy ahead of the new regulation, although purchases were also driven by food demand for Lunar New Year celebrations in February.

Traders and analysts said China's port stocks stood at 700,000 to 750,000 tonnes in August, easing from almost one million tonnes in May, but higher than the 450,000 to 500,000 tonnes seen last year.

RTRS-China to stockpile domestic corn, soy for state reserves-source

BEIJING, Nov 13 (Reuters) - The Chinese government will start stockpiling soy and corn from local farmers at higher prices than a year ago, an industry source said on Tuesday, a move set to stabilise domestic prices and support soy imports.

China, the world's top soy buyer, will pay 4,600 yuan ($740) per tonne to soy farmers in four major growing areas in the northeast. The price was 15 percent higher than what was offered last year, said the source who has seen a government document.

Beijing will pay between 2,100-2,140 yuan per tonne to stockpile domestic corn in the northeast corn belt, up about 7 percent from year ago, the source said.

The latest stockpiling, expected to start over the coming weeks and stretch till the end of April, is an annual exercise to protect farmers' interest.

With the new stockpiling price for soybeans around 4 percent above the price of imported supplies at Chinese ports 0#ASSOYA-CN, analysts said the government's latest reserve build would keep crushers' enthusiasm for imports alive.

"The stockpiling plan will stabilise domestic prices at current levels. Crushers will continue to import as domestic demand stays healthy," said Zhang Ruming, an analyst with Dalian Liangyun Futures Co. Ltd.

China has stayed on the sidelines of the global corn market as high international prices made imports unattractive.

Industry speculation of stockpiling prices has already pushed up Dalian soy prices 0#DSA:, with the most-active May 2003 contract up 1.24 percent to close at 4,757 yuan per tonne on Tuesday.

China's soy imports are expected to rise to 4.8 million tonnes in November, up from 4.03 million tonnes in October, according to estimates by the China National Grain and Oils Information Center (CNGOIC).

Beijing has been selling its state reserves over past months to help keep the market well supplied and cap food inflation.

China, the world's second largest consumer, is expecting a record corn harvest or 201 million tonnes, which was 4.3 percent higher than last year.

RTRS- NOPA October U.S. soy crush seen at 147.713 million bushels

CHICAGO, Nov 13 (Reuters) - The National Oilseed Processors Association's monthly soybean crush data scheduled for release on Wednesday should show the U.S. crush for October at 147.713 million bushels, analysts projected on Tuesday.

If realized, the figure would mark the industry group's biggest October crush since 2010 and the highest monthly total reported by NOPA since November 2010.

Trade estimates ranged from 138.0 million to 153.0 million bushels. NOPA reported the September crush at 119.732 million bushels.

The soy crush typically rises from September to October as the U.S. soybean harvest progresses, replenishing supplies. Strong cash crush margins this autumn al so ha ve encouraged soy processors to step up crushing operations, analysts said.

NOPA reported the soy crush in October 2011 at 141.179 million bushels. I ts October 2010 crush figure was 1 51. 8 64 m illion bushels.

The consensus estimate for NOPA's October 2012 U.S. soyoil stocks figure was 2.090 billion lbs, up from NOPA's September figure of 2.043 billion lbs. Analysts' estimates ranged from 1.975 billion to 2.215 billion.

NOPA reported October 2011 soyoil stocks at 1.876 billion lbs.

RTRS- India to buy more palm oil as edible oil imports rise -Oil World

HAMBURG, Nov 13 (Reuters) - India will raise palm oil purchases in coming months as its edible oil imports continue to rise but its soyoil and sunflower oil purchases will fall slightly, Hamburg-based oilseeds analysts Oil World said on Tuesday.

India will import 7.88 million tonnes of palm oil between Oct. 2012 to Sept. 2013, up from 7.47 million tonnes in 2011/12, Oil World estimates.

Soyoil imports in 2012/13 will drop slightly to 1.20 million tonnes from 1.25 million tonnes in 2011/12 and sunflower oil imports will fall to 1.00 million tonnes from 1.15 million tonnes, it forecast.

“India has become increasingly dependent on vegetable oil imports in the past 15-20 years,” it said. “This was the result of the rapidly rising domestic requirements and insufficient domestic production.”

India’s total 2012/13 edible oil imports including other types will rise to 10.37 million tonnes from 10.16 million tonnes in 2011/12 and only 8.62 million tonnes in 2010/11, it said.

Oilseed yields in India remain unusually low in comparison with other countries, it said. In contrast to improvements in Indian grain crops, India's government and oilseed industry associations have been unsuccessful in efforts to promote better productivity in Indian oilseed farming, it said.

RTRS-Indonesian palm industry rejects France's proposed "Nutella tax"

JAKARTA, Nov 13 (Reuters) - A proposed tax increase on palm oil in food in France, dubbed the "Nutella tax", should not go ahead because health fears associated with the edible oil do not stand up to scrutiny, an industry group in top producer Indonesia said on Tuesday.

The tax would rise to 400 euros ($510) a tonne from 100 euros if the proposal floated by a Senate committee this month secures majority backing in the Senate and in the lower house of France's parliament, the National Assembly.

The makers of Nutella said on Saturday they would not change the lucrative recipe even if France, its biggest market, endorsed the proposal

The use of palm oil has been met with increased public opposition in France and other Western nations due to deforestation and to allegations it can cause health problems.

"It is wrong," Sahat Sinaga, executive director at the Indonesian Vegetable Oil Association (GIMNI) told Reuters. "It is not a new issue. I don't think they will pass this law."

Similar palm oil health warnings gained heavy publicity in the United States decades ago and had subsequently been disproved by academic research, he said.

"Let's again do research into the health (impacts)," said Sinaga, a former employee of Unilever. "From a technical and scientific point of view, this is not correct."

The main ingredients of Nutella food spread are sugar, palm oil, milk powder, hazelnuts, cocoa, emulsifier and flavouring. According to Nutella's website, more than 100 million jars were sold in France in 2008.

Sinaga's comments echoed those on Monday by Malaysian Palm Oil Council chief Yusof Basiron, who said the French tax proposal threatened the livelihoods of more than 240,000 small farmers.

In a statement, Basiron urged the French government to reject the proposal, which he said could significantly undermine the competitiveness of France's food industry.

Palm oil, the world's most traded and consumed edible oil, is used mainly as an ingredient in food such as biscuits and ice cream, or as a biofuel.

Indonesia and Malaysia account for about 90 percent of global palm oil production of around 50 million tonnes.

While emerging markets such as India and China dominate palm purchases globally, Europe is also a large buyer.

Sinaga, whose association has 30 members who account for 65 percent of refining capacity in Indonesia, said he was worried that other countries might follow France's lead.

Asked about other challenges facing the palm industry, Sinaga said modernising Indonesia's state-owned ports was crucial to handle the rapidly expanding refined palm oil output.

He said that if the three main state-owned ports in Belawan and Dumai in Sumatra and Jakarta did not modernise, palm stocks levels in Indonesia would rise next year.

"We want the port facilities to improve their pumping capacity," added Sinaga. "It is now an average of 600 tonnes per hour and should be 1,000 tonnes per hour."

Indonesia slashed export taxes for processed oil in October last year in an effort to boost investments in processing and create more jobs in the industry.

Previously, the archipelago had focused on increasing plantations, which currently cover about 8.2 million hectares.

Palm oil refinery capacity in Indonesia will rise 21 percent this year to 25 million tonnes, Sinaga said last week.

Malaysia, the world's no. 2 palm producer, last month said it would cut export taxes next year. (Full Story)

The Indonesian Palm Oil Association, which represents mostly plantation firms, last week called on the Indonesian government to reduce palm oil export taxes to gain greater parity with Malaysia and safeguard shipments to top buyer India.

Highlighting a spilt in the industry, Sinaga reiterated his call for the Indonesian government not to make any change the current export tax regime as consistency is better for business.

RTRS- Argentine soy prices fall further on CBOT moves

BUENOS AIRES, Nov 13 (Reuters) - Argentina's closing soy prices and trends on Tuesday:

• Soy prices closed down for a third straight session at 1,810 pesos ($378) per tonne compared with the prior session's unofficial price of 1,850 pesos, affected by losses in U.S. soy futures that lasted much of the day.

• Soybean futures on the Chicago Board of Trade closed mixed on Tuesday, with the front two contracts rebounding to close higher on firm cash markets and slowed farmer offerings, traders said.

• In Rosario, soy for delivery in May 2013, which trades in U.S. dollars, closed at $315 per tonne.

Trader's Highlight

DJI- NEW YORK, Nov 13 (Reuters) - World stocks fell on Tuesday, extending losses as U.S. stocks reversed gains on worries that the United States could fall back into recession due to looming spending cuts and tax rises if Congress does not act, and the euro weakened as Greece faced delays in winning more aid.

The euro hit a more than two-month low against the dollar and a one-month trough versus the yen on concern about the delays in aid for debt-burdened Greece and on uncertainty about whether Spain will seek a bailout.

Worries about Greece and Spain have caused the euro to lose value against the safe-haven dollar in seven of the last nine trading sessions. So far in November, the euro has fallen 1.9 percent against the dollar and 1.7 percent against the yen.

In late trading, the euro EUR= was slightly lower at $1.2704, after earlier trading as low as $1.2660, its lowest level since Sept. 7.

Greece's international lenders gave the country more time to fix its budget, though they did not disburse the aid Greece had hoped to use to refinance 5 billion euros of its debt by Friday.

A public clash between Greece's international lenders over how Athens can bring its debts down to a sustainable level has fueled fears that Europe's troubles could flare up anew.

"When those overseeing resolution to the euro zone crisis continue to disagree, it becomes very difficult to instill confidence in investors," said Sean Cotton, foreign exchange adviser at Bank of the West in San Ramon, California.

On Wall Street, equities sold off late in the session, led by a slide in Microsoft, although retailers were a notable bright spot after Home Depot, the world's largest home improvement chain, raised its outlook.

"Stocks opened with a boost of upside energy, but when there was no follow-through by late morning, players just took some chips off the table to wait for tomorrow's retail sales figures and any developments in the fiscal cliff negotiations," said John Canavan, market analyst at Stone & McCarthy Research Associates in Princeton, New Jersey.

The market is grappling with how a divided U.S. Congress will deal with the series of mandated tax hikes and spending cuts that start to take effect next year and could take the world's largest economy back into recession. However, serious negotiations are still weeks away, analysts said.

The Dow Jones industrial average .DJI was down 58.90 points, or 0.46 percent, at 12,756.18. The Standard & Poor's 500 Index .SPX was down 5.50 points, or 0.40 percent, at 1,374.53. The Nasdaq Composite Index .IXIC was down 20.37 points, or 0.70 percent, at 2,883.89.

The release of October U.S. retail sales on Wednesday is expected to offer key insights into how consumer spending is shaping up for the fourth quarter, said Deutsche Bank Securities chief U.S. economist Joseph LaVorgna.

Dow component Home Depot Inc HD.N raised its full-year outlook and cited an improving housing market as it reported quarterly results. Its stock rose 3.6 percent to finish at $63.38.

Microsoft MSFT.O shares fell 3.2 percent to $27.09 after the surprising departure of a key executive, who analysts said was the driving force behind the company's biggest product.

The risk aversion gripping investors boosted U.S. Treasuries, with the benchmark 10-year Treasury note up 6/32, and its yield easing to 1.59 percent.

A weak German ZEW sentiment survey heightened concerns about the impact of the euro zone crisis on Europe's largest economy and knocked the euro earlier in the session.

The FTSEurofirst 300 .FTEU3 pan-European index closed up 4.81 points, or 0.44 percent, at 1,099.16. Spain's IBEX index .IBEX rallied 1.7 percent, while its bond yields eased slightly

Brent crude oil LCOc1 slipped $0.89 to $108.18 a barrel, falling for a second day on worries about demand growth in a well-supplied market as the United States and Europe grapple with fragile economies.

Platinum group metals rose sharply after a forecast that production outages earlier this year could create a supply deficit, while gold traded flat as investors awaited more clarifications on Greek aid by the euro zone.

Spot gold XAU= eased 0.1 percent to $1,725.94 an ounce.

U.S. COMEX gold futures for December delivery GCZ2 settled down $6.10 at $1,724.80 an ounce, preliminary Reuters data showed.

NYMEX- NEW YORK, Nov 13 (Reuters) - U.S. crude futures edged lower on Tuesday in choppy trading, a second consecutive decline, pressured by concerns about weak demand in a well-supplied market as the United States and Europe struggle to bolster fragile economies.

 

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade closed mixed, with the front two contracts rebounding to close higher on firm cash markets and slowed farmer offerings, traders said.

* Spot November soybeans SX2 rallied 1.1 percent ahead of the contract's expiration on Wednesday.

• The benchmark January contract SF3 rallied after dipping below psychological support at $14.00 per bushel for the first time since June.

• Soybeans Sc1 had dropped more than 6 percent since the U.S. Department of Agriculture surprised traders on Friday by raising its estimate for U.S. soybean production above trade expectations.

• Market rebounded on strengthening cash values as the drop in futures halted farmer soybean sales. Spot basis bids for soybeans shipped by barge to the U.S. Gulf Coast firmed on strong exporter demand, mostly for near term shipments amid concerns of a slowdown or halt to barge traffic on the mid-Mississippi River.

• USDA reported export inspections of U.S. soybeans in the latest week at 64.065 million bushels, topping trade expectations for 53 million to 59 million bushels.

• Soymeal futures closed higher, regaining ground against soyoil on meal/oil spreads.

• Analysts expect the National Oilseed Processors Association on Wednesday to report the October U.S. soybean crush at 147.713 million bushels, up from NOPA's September figure of 119.732 million. Estimates ranged from 138.0 million to 153.0 million bushels.

• The Chinese government will start stockpiling soy and corn from local farmers at higher prices than a year ago, an industry source said on Tuesday, a move set to stabilize domestic prices and support soy imports.

FCPO- SINGAPORE, Nov 12 (Reuters) - Malaysian palm oil futures recovered after falling to their lowest in three years on Monday, as a rise in Malaysian palm oil stocks in October missed market expectations and signalled a slowdown in inventory buildup.

Prices fell to 2,220 ringgit ($725) per tonne before the midday break, a level last seen in November 2009, tracking steep drops in Dalian soybean oil and U.S. soybeans after a larger-than-expected production forecast from the U.S. Department of Agriculture (USDA) on Friday.

But the benchmark January contract FCPOc3 on the Bursa Malaysia Derivatives Exchange closed up 0.4 percent at 2,324 ringgit after industry regulator the Malaysian Palm Oil Board reported a 1.1 percent increase in palm oil stocks to a record 2.51 million tonnes.

The rise missed market expectations that stocks in the world's No.2 palm oil producer likely climbed 7.5 percent to 2.67 million tonnes.

"It is very bullish. Nobody expected this figure. Nobody. We were expecting a bigger glut than usual in stocks," said a trader with a foreign commodities brokerage in Malaysia.

Total traded volumes stood at 48,969 lots of 25 tonnes each, much higher than the usual 25,000 lots despite expectations for a quiet market ahead of the Diwali and Awal Muharram holidays in Malaysia this week.

Market participants will be looking out for Malaysia's Nov. 1-10 exports data from Societe Generale de Surveillance later, after another cargo surveyor Intertek Testing Services reported on Saturday a 16 percent rise from the previous month.

In a bearish sign for palm oil, crude oil eased towards $109 per barrel on Monday, as concerns about the looming U.S. fiscal cliff and weak economic data from Japan offset signs that Chinese oil demand grew last month.

In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 was down 0.7 percent in late Asian trade. The most active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 3.9 percent lower, after earlier hitting its 4-percent daily limit.

REGIONAL EQUITY- Nov 13 (Reuters) - Thai shares fell to their two-week low on Tuesday on concerns about the U.S. fiscal cliff and about the Greece's debt crisis, while the Philippines and Vietnam stocks also ended weaker.

Major Southeast Asian stock markets in Singapore .FTSTI, Indonesia .JKSE and Malaysia .KLSE were closed for a public holiday.

Thailand's broader stock index .SETI fell 0.4 percent to its lowest since Oct. 29, while the Philippines .PSI and Vietnam .VNI lost 0.3 percent and 0.9 percent, respectively, in thin volume.

"Global concerns due to U.S. fiscal cliff and Greece's debt problem are the main factors," said Pichai Lertsupongkit, head of investment advisory services at Thanachart Securities.

"The markets will be waiting to see directions from the fiscal cliff and Greece's debt issue and we might see sideway movements until then."

In Hanoi, shares in several Vietnam-listed property companies fell on concerns over bad debt, and analysts expect further fall in the real estate stocks.

RTRS- Malaysia October palm stocks hit record but lower than expected

KUALA LUMPUR, Nov 12 (Reuters) - Malaysia's October palm oil stocks hit record levels but were below market expectations, signalling a slowdown in inventory build up is imminent and potentially supporting prices.

Industry regulator the Malaysian Palm Oil Board said on Monday that stocks in the world's No 2 producer of the edible oil rose 1.1 percent to a record 2,508,644 tonnes as output stayed higher than exports despite a slight decrease in yields.

October's muted rise missed market expectations that stocks likely climbed 7.5 percent to 2.67 million tonnes, leaving traders scrambling at the midday break to key in orders before the futures market re-opens in the afternoon.

"It is very bullish. Nobody expected this figure. Nobody. We were expecting a bigger glut than usual in stocks," said a trader with a foreign commodities brokerage. "We expect the market now to recoup some its steep losses earlier in the day."

Palm oil futures tumbled 4 percent to the lowest in three years, tracking steep drops in U.S. soybeans after a larger-than-expected production forecast from the U.S. Department of Agriculture.

Palm oil stocks are still large and will add to rising global edible oil supplies, although traders say the muted increase gives them a chance to come back into market.

October production unexpectedly fell 3.3 percent to 1.94 million tonnes from 2 million tonnes a month ago as yields weakened in peninsula Malaysia and Sarawak after months of strong growth.

"Production might go either way. Oil palm trees are taking a mini-breather in October before producing more again or this is the start of a low cycle again," said a plantation official.

"Also, it is the rainy season again. Harvesting rounds, and therefore production might get disrupted."

Exports on the other hand jumped 16.2 percent to 1.75 million tonnes, MPOB data showed, driven by demand from China and other Asian consumers restocking ahead of the Lunar New Year holidays in February 2013.

Trader's highlight

DJI- NEW YORK, Nov 9 (Reuters) - U.S. stocks and oil prices gained on Friday on a rise in U.S. consumer sentiment to a more than five-year high, outweighing gloom that the "fiscal cliff" in the United States and Europe's economic woes may lead to a world recession.

Stocks later trimmed their gains after President Barack Obama said any deal with Congress to avert a fiscal crisis must come with higher taxes on the wealthiest Americans.

U.S. Treasury bonds cut losses to trade almost flat on Obama's remarks, in which the newly re-elected president invited congressional leaders to the White House next week to start negotiating.

A 3.5 percent gain in gold prices this week was bullion's biggest weekly rise since late August and reflected a hedge against economic uncertainty.

The so-called fiscal cliff, aimed at cutting the federal budget deficit, could take an estimated $600 billion out of the economy in automatic spending cuts and tax hikes, severely hindering economic growth.

"Clearly taxes are going up and that is something the market doesn’t like. There is concern the economy continues to weaken, and there is not much left in the tank in terms of making corporate profitability better," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

The surprisingly strong sentiment survey showed American consumers felt more optimistic about employment prospects and the economic outlook, according to a Thomson Reuters/University of Michigan index, easing the gloom from Europe.

The Dow Jones industrial average .DJI closed up 4.07 points, or 0.03 percent, at 12,815.39. The Standard & Poor's 500 Index .SPX rose 2.34 points, or 0.17 percent, at 1,379.85. The Nasdaq Composite Index .IXIC gained 9.29 points, or 0.32 percent, at 2,904.87.

European shares provisionally ended flat, paring losses on the U.S. data, which included a government report that wholesale inventories rose in September by the most in nine months. Inventories are a key element in the government's measure of economic growth.

Falling industrial output in France, Italy and Sweden and a warning from a German ministry that Europe's largest economy was expected to slow further rattled investors.

Also weighing on investors was news that euro zone finance ministers are unlikely to release a new tranche of loans to Greece on Monday because there is no agreement on how to make its debt sustainable.

"It's the core Europe now, not just the peripheral Europe, that may be sliding into a recession," said Boris Schlossberg, managing director of FX Strategy at BK Asset Management in New York. "If that happens, then China will lose its export market and the whole global economy will begin to contract.

"The market is very afraid that Europe could drag the whole global economy down."

Oil pushed higher in choppy trading, lifted by the improved U.S. consumer sentiment and Chinese data indicating a strengthening economy. O/R

U.S. crude futures CLc1 gained 98 cents to settle at $86.07 a barrel, while Brent LCOc1 futures settled $2.15 higher at $109.40 a barrel O/R.

The euro dropped to a two-month low against the U.S. dollar and could extend losses as fears mount that the euro zone's debt crisis and deteriorating economic conditions could drag on global economic growth.

The euro was down 0.27 percent at $1.2711 EUR= and was seen vulnerable to further losses. The dollar index .DXY rose 0.31 percent to 81.041.

Gold XAU= hit a three-week high of $1,738.66 an ounce before pulling back. Spot gold prices rose $1.47 to $1,731.40.

U.S. COMEX gold futures for December GCZ2 settled up $4.90 at $1,730.90 an ounce.

Prices of safe-haven U.S. Treasuries slipped as stock gains sparked by improved consumer sentiment whetted investors' appetite for riskier assets.

The benchmark U.S. Treasury 10-year note was flat in price to yield 1.6165 percent. US10YT=RR

NYMEX-NEW YORK, Nov 9 (Reuters) - U.S. crude futures rose on Friday, receiving a lift from a rise in a consumer sentiment reading as well as from gains in gasoline futures.

Crude posted a 1.4 percent gain for the week, snapping a string of three weekly declines.

CBOT SOYBEAN-Front-month soybean futures on the Chicago Board of Trade fell nearly 3 percent to a 4-1/2 month low on Friday after the U.S. Department of Agriculture raised its estimate of the U.S. 2012

soybean crop more than traders expected.

* The benchmark January soybean contract SF3 filled a gap in its chart dating back to July, but stayed above major support at its 200-day moving average at $14.49.

• CBOT soybeans Sc1 ended the week down 4.9 percent, their biggest weekly slide in seven weeks. Soymeal SMc1 fell 5.5 percent for the week and soyoil BOc1 fell 3.0 percent.

• USDA raised its estimate of U.S. 2012/13 soybean production to 2.971 billion bushels, above an average of trade estimates for 2.892 billion. USDA raised its average soy yield estimate to 39.3 bushels per acre, from 37.8 in October, citing beneficial late-season rainfall.

• USDA raised its projection for U.S. 2012/13 soybean ending stocks to 140 million bushels, up from 130 million in October and above the average trade estimate for 131 million.

• USDA raised its forecast of U.S. 2012/13 soyoil ending stocks, but left soymeal stocks unchanged as an increase in soymeal exports offset an increase in production.

• Informa Economics raised its forecast of U.S. 2013 soybean plantings to a record-high 80.1 million acres, from its previous projection of 79.987 million and up from 77.2 million acres seeded in 2012. Informa forecast 2013 soy production at a record-high 3.459 billion bushels.

• Satisfactory crop weather forecasts in Brazil and Argentina added pressure.

• Malaysian palm oil futures fell to a one-month low ahead of stocks data from the Malaysian Palm Oil Board on Monday that traders say may show another record high in October.

FCPO- SINGAPORE, Nov 9 (Reuters) - Malaysian palm oil futures fell to a one-month low on Friday, posting their steepest weekly loss since September, as traders stayed cautious ahead of key industry reports.

The Malaysian Palm Oil Board (MPOB) reports stocks data on Monday, which could show inventories at a record-high 2.67 million tonnes at end-October, according to a Reuters survey.

"Positioning ahead of the MPOB report will continue. Effects of weather vagaries will become clearer in the weeks and months ahead," a trader with a commodities brokerage in Malaysia said, referring to year-end floods that could hurt output and lift prices.

"But a hangover from high supply will certainly send any price recovery into a tailspin," the trader added.

Traders are also expecting higher forecasts for U.S. soybean crops from a U.S. Department of Agriculture report later in the day, which could mean a higher supply of rival soybean oil and weigh on palm oil prices.

At the close, the benchmark January contract FCPOc3 on the Bursa Malaysia Derivatives Exchange lost 0.9 percent to 2,316 ringgit ($757) per tonne. Prices had earlier fallen to 2,308 ringgit, the lowest since Oct. 3.

Total traded volumes stood at 40,042 lots of 25 tonnes each, much higher than the usual 25,000 lots.

Malaysian palm oil futures have lost more than 27 percent so far this year, weighed down by record high stocks and global economic uncertainty. For the week, prices posted a 7.2 percent loss, their worst since the end of September.

In related markets, Brent crude held steady above $107 per barrel on Friday as worries about the U.S. fiscal health and its impact on oil demand growth, already dented by a weak global economy, capped price gains.

REGIONAL EQUITY- BANGKOK, Nov 9 (Reuters) - Major Southeast Asian stock markets closed mostly weaker-to-flat on Friday, with Thai stocks capping the worst weekly loss in the region, in line with downbeat global stock market sentiment due to concerns over the U.S. fiscal cliff.

Bangkok's SET index .SETI fell for a fourth straight session, ending the day down 0.22 percent, with weekly loss rising to 1.2 percent. Singapore's Straits Times Index .FTSTI inched down 0.1 percent, leaving losses for the week at 1 percent.

Among the leading decliners, Thai Oishi Group OISH.BK plunged 22 percent after the food and beverage firm reported a third-quarter net loss, while Singapore's Noble Group NOBG.SI dropped 8 percent after the commodities trader reported lower-than-expected earnings for its third quarter.

 

Malaysia's main index .KLSE ended nearly unchanged, recouping earlier losses, as battered stocks such as Axiata Group Bhd AXIA.KL regained some ground lost recently. It was down 0.9 percent on the week. Jakarta's Composite Index .JKSE inched up 0.13 percent, down 0.12 percent on the week.

Trader's highlight

DJI - NEW YORK, Nov 8 (Reuters) - U.S. stocks fell on Thursday and could be in line for more weakness as worries about Washington's ability to find a timely solution to the "fiscal cliff" dominate investor thinking in coming weeks.

 The Dow Jones industrial average  lost 121.41 points, or 0.94 percent, to end at 12,811.32. The Standard & Poor's 500 Index  fell 17.02 points, or 1.22 percent, to 1,377.51, ending at its lowest level since Aug. 2. The Nasdaq Composite Index  dropped 41.70 points, or 1.42 percent, to close at 2,895.58.

Investors worry that if no deal is reached in Congress over some $600 billion in spending cuts and tax increases due to take effect early next year, the struggling U.S. economy could fall into recession.

 

On the data front, the U.S. government reported a better-than-expected drop in weekly first-time claims for unemployment benefits as well as a rise in U.S. exports. While that news supported stock futures early in the U.S. trading day, it was soon overshadowed by the U.S. fiscal worries.

NYMEX - NEW YORK, Nov 8 (Reuters) - U.S. crude rose on Thursday, rebounding from a nearly 5 percent plunge the previous session, though gains were limited by concerns about Europe's economy coupled with approaching tax increases and spending cuts in the United States.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell for a second day and settled below $15 a bushel for the first time in three weeks on disappointing weekly U.S. export sales, traders said.

Trade expectations that USDA will raise its estimate of the U.S. 2012 soybean harvest in a monthly report on Friday added pressure. The average analyst estimate ahead of the report was for 2.892 billion bushels, up from USDA's October estimate of 2.860 billion.  

USDA reported export sales of U.S. soybeans in the latest week at 191,900 tonnes (186,400 for 2012/13), far below trade expectations for 600,000 to 800,000 tonnes. USDA's figures included cancellations of 545,600 tonnes from unknown destinations. 

China's state grains authority sold only about 16 percent of the nearly 400,000 tonnes of soy reserves offered during its weekly auction as crushers put off making bigger purchases after the government raised bid prices.

FCPO - SINGAPORE, Nov 8 (Reuters) - Malaysian palm oil futures fell to their lowest in more than a month on Thursday, tracking losses in global markets caused by renewed worries that economic woes in the United States and Europe could hurt commodity demand.

Sentiment was also dented by a gloomy outlook for Europe after the European Commission said the euro zone economy would barely grow next year.

"There is a lot of uncertainty after the U.S. election, you have all these problems in Europe, and then there's also the fiscal cliff," said a trader with a foreign commodities brokerage in Malaysia.

"Local sentiment for palm is also bearish, because of high stocks. I don't think palm has any support until you can see very strong demand followed by a drawdown in stocks, then the market will stabilise."

Palm oil prices must stay at around 2,200 ringgit a tonne for two months in order to stimulate demand for the edible oil and reduce high stock levels, leading industry analyst Dorab Mistry said at a conference in China on Thursday. 

Stock levels in Malaysia, the world's No.2 palm oil producer, may reach a new record at 2.67 million tonnes in October, a Reuters survey showed on Tuesday.

Regional Equity - BANGKOK, Nov 8 (Reuters) - Major Southeast Asian stock markets fell on Thursday, with Singapore sliding to a two-month closing low and Malaysia extending losses to six-week lows, as worries about a looming budget crisis in the United States dented global sentiment.

Plantation stocks fell along with weaker Malaysian palm oil futures after broker Macquarie Research downgraded the plantation sector to 'underweight', reflecting weaker prospects for crude palm oil prices.

  

 .