Palm Oil Drops to Two-Month Low as Brazil’s Soy Supplies Cl‏imb

March 14 (Bloomberg) -- Palm oil declined to the lowest level since January on concern that a bumper soybean crop in Brazil, poised to be the world’s largest grower this year, will boost global oilseed supplies and damp demand.

The contract for May delivery dropped as much as 1.5 percent to 2,362 ringgit ($759) a metric ton on the Malaysia Derivatives Exchange, the lowest most-active price since Jan. 14.

Futures were 2,363 ringgit at close of the morning session in Kuala Lumpur, down 30 percent in the past year.

About 11.9 million tons of soybeans and its products were scheduled for shipment at major ports in Brazil as of yesterday, up from 10.77 million tons a week ago, according to SA Commodities and Unimar Agenciamentos Maritimos.

The country is set to overtake the U.S. this year as the top exporter of the beans that can be crushed to make soybean oil. “Buyers know that the supply is coming, so they may be only willing to offer lower prices,” said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd., referring to oilseeds from Brazil.

Soybean oil for May delivery fell 0.2 percent to 49.41 cents a pound on the Chicago Board of Trade, while soybeans for May delivery retreated 0.5 percent to $14.40 a bushel. Soybean oil was about 1.44 times costlier than palm.

Refined palm oil for delivery in September dropped 0.7 percent to 6,296 yuan ($1,012) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month was little changed at 8,032 yuan a ton.

RTRS - UPDATE 1-India's Feb palm oil imports drop 10 pct mm, duty hike hurts

NEW DELHI, March 14 (Reuters) - India's palm oil imports dropped almost 10 percent in February from an all-time high in the previous month, a trade body said on Thursday, hurt by a duty hike to curb cheap imports from Southeast Asia and higher stock levels.

India is the world's biggest importer of vegetable oils and leading producers Indonesia and Malaysia have been vying to make their oils more attractive by varying taxes. India retaliated with an import duty hike on crude palm oil in January.

It imports about 8-9 million tonnes a year or about half its total demand. Palm oil accounts for about 80 percent of imports.

India's vegetable oil imports fell about 17 percent to 969,175 tonnes last month with palm oil imports dropping to 805,362 tonnes, the Solvent Extractors' Association (SEA) said in a statement.

A Reuters survey had forecast average vegetable oil imports to be 981,500 tonnes in February, including 794,000 tonnes of palm oil.

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

Huge stocks built up due to higher imports in recent months and softer domestic demand as the rapeseed harvest started led to lower imports in February, said B.V. Mehta, executive director of the Mumbai-based trader body.

But he cautioned imports were "still on the higher side and domestic prices are expected to fall in coming months", adding that this could mean domestic oilseeds growers might cut production.

In January, India's vegetable oil imports rose to 1.2 million tonnes, with palm oil imports surging 13 percent on the month to a record 893,313 tonnes.

New Delhi slapped a duty of 2.5 percent on crude palm oil during the second half of January to curb imports, but refiners have demanded a further rise to protect themselves and domestic oilseed growers.

As India's population grows in size and wealth, demand for cooking oils is rising. New Delhi tries to encourage local oilseed production, partly by guaranteeing minimum prices to farmers, but has had limited success.

RTRS - Dollar rises across the board on upbeat U.S. data

NEW YORK, March 13 (Reuters) - The dollar climbed to a seven-month high against a basket of currencies and a three-month peak against the euro on Wednesday as robust U.S. retail sales data bolstered prospects for the world's largest economy.

The greenback has risen nearly 4 percent against a currency basket and about 1.8 percent versus the euro so far this year. It has outperformed most major currencies in 2013.

The U.S. retail sales data was the latest evidence that the economy is firing on almost all cylinders. The Commerce Department said February retail sales increased 1.1 percent, the largest monthly rise since September.

"The growing dichotomy between the ever-improving U.S. economic picture and the moribund conditions in the euro zone has finally pushed the euro through the $1.2950 key support level against the dollar," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.

• U.S. retail sales post largest rise since September
• U.S. economy outperforms, boosting dollar sentiment
• Euro hurt by higher Italian bond yields after auction
• RBNZ keeps rates steady, says won't raise rates this year

RTRS - RPT-AccuWeather says most of US setting up for good growing year

WASHINGTON, March 13 (Reuters) - The spring weather pattern for the United States looks greatly improved from a year ago, when drought was both widespread and severe, which is good news for agricultural producers, a private weather forecaster said on Wednesday.

A series of winter storms, which have continued into March, add up to a more positive outlook for crops that will be planted from the Plains to the East Coast, AccuWeather said in its 2013 U.S. spring weather outlook.

"A bumper crop of corn alone later this summer could eventually reduce the pressure on grain, livestock feed and other consumer prices," said the firm, which is based in State College, Pennsylvania.

"Compared to last year, for the season as a whole, more moisture will be available for agriculture due to lower temperatures and lower evaporation rates from the Mississippi Valley to much of the Atlantic coastal plain."

The U.S. Department of Agriculture has projected record large U.S. corn and soybean crops this year, assuming normal growing conditions. New-crop futures at the CBOT are trading well below old-crop in anticipation of bumper harvests.

"We expect ample moisture during most of the growing season, with few exceptions into this summer from the Mississippi Valey to the East Coast," said Paul Pastelok, head of AccuWeather's long-range forecasting department.

Echoing a recent U.S. government forecast, AccuWeather said that parts of California and the Florida peninsula could experience drought or at least drier-than-normal conditions into the first part of the summer.

"A lack of big snowstorms over the Sierra Nevada and other ranges in the West could mean water resource limitations in California," the firm said.

But overall, the severe drought that extended over much of the United States in 2012, and hammered U.S. corn, soybean and wheat growers, is not expected to be repeated.

Winter storms have added up to near-normal snowfall for major cropping areas of the lower Plains through the Midwest and in parts of the Northwest United States, AccuWeather said.

Average temperatures are also significantly lower this March from a year ago, which will result in lower evaporation rates for a time.

"Overall, less long-lasting, extreme heat is forecast from the Mississippi Valley to the East during most of the spring and summer," the group said.

One negative of cooler spring temperatures is that crops generally could be planted later this year, limiting the opportunity for double-cropping, said Dale Mohler, an agricultural weather specialist with the firm.

Trader's highlight

DJI - NEW YORK, March 13 (Reuters) - U.S. stocks edged up on Wednesday, with the Dow rising for the ninth straight session to another record, buoyed by surprisingly strong retail sales that suggested the economy is gaining momentum.

The Dow Jones industrial average's nine-day winning streak is the longest consecutive run since November 1996.

But trading volume was light. Moves have been muted in recent days as investors consolidate positions after a strong run-up in the first three months of the year. Still, weakness in stocks has been met with buying, which helped propel the market's advance.

The broader S&P 500 is within striking distance of its all-time closing high of 1,565.15 and about 1 percent away from all-time intraday high of 1,576.09 - both set in 2007.

"I think we will soon see the S&P at all-time high levels. I don't think the market has topped yet, and there is still strength to move the market higher," said Ari Wald, technical strategist at C&Co/PrinceRidge in New York.

"Will we see a correction of 10 percent or so soon? Not imminently. We have not seen a divergence of behavior yet where participants become more selective on which stocks to buy."

The Dow Jones industrial average gained 5.22 points, or 0.04 percent, to 14,455.28, another record closing high. The Standard & Poor's 500 Index advanced 2.04 points, or 0.13 percent, to 1,554.52. The Nasdaq Composite Index gained 2.80 points, or 0.09 percent, to end at 3,245.12.

Signs of strength in the economy and the Federal Reserve's easy monetary policy have helped U.S. equities accelerate their advance. The blue-chip Dow is up 10.3 percent for the year and the benchmark S&P 500 index has gained 9 percent.

Wednesday's retail sales report reinforced the view that the U.S. economy has momentum, even with the obstacles the recovery is facing. Sales increased 1.1 percent in February, the largest increase since September.

Investors had been looking for signs of any impact on spending from stubbornly high unemployment and a higher payroll tax that went into effect at the start of the year.

Brent Crude Oil - NEW YORK, March 12 (Reuters) - Brent crude oil fell on Tuesday after seesawing with the euro and the dollar, and as OPEC's trimmed forecast for U.S. and euro zone economic growth also applied pressure.

Brent April crude fell 57 cents, or 0.52 percent, to settle at $109.65 a barrel, having traded from $109.30 to $111.20.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell 1.5 percent on technical selling and talk of slowing demand from top global soy buyer China, traders said.

* The most-active May soybean contract fell for a second straight session, dropping below its 20-day moving average to settle at its lowest level since March 1.

 

·         Market pressured by weakening cash soybean bids in the  U.S. Pacific Northwest, which signaled a slowdown in export  demand as the South American harvest progresses. Cash bids for   soybeans shipped by barge to the U.S. Gulf also eased. 

 

·         Nearby soybean contracts lost to back months on spreads, eroding some of the premiums that shorter-dated contracts have  built up amid concerns about historically tight U.S. supplies.

 

·         The spring weather pattern for the United States looks  greatly improved from a year ago, when drought was both  widespread and severe, AccuWeather said in its 2013 U.S. spring weather outlook.

 

·         Losses in soyoil limited by firming U.S. cash values.

·         Egypt's Meditrade issued an international tender to purchase up to 15,000 tonnes of soyoil and 15,000 tonnes of  sunflower oil, European traders said. 

 

·         CBOT said deliveries against March futures included five  contracts of soybeans, one for soymeal and three for soyoil. 

BMD CPO - SINGAPORE, March 13 (Reuters) - Malaysian palm oil futures slipped to a two-month low on Wednesday as weakness persisted in overseas soybean markets, although traders said easing palm oil output should provide some support.

U.S. soybean prices have been pressured by weak export demand, which also weighed on soybean oil, with China's soybean oil losing more than 3 percent so far this week.

Palm oil tends to track soybean oil prices closely as the commodities are used as substitutes for one another. But traders said a decline in production in February that may continue this month could provide some support for palm oil prices.

"Liquidation persists in futures, although some traders think it is funds-related," said a trader with a commodities brokerage in Malaysia. "The well-advertised supply constraints should keep fundamentals intact."

By Wednesday's close, the benchmark May contract on the Bursa Malaysia Derivatives Exchange had dropped 0.6 percent to 2,397 ringgit ($773) per tonne, slightly above its intraday low of 2,365 ringgit, a level unseen since January 14.

Total traded volume stood at 31,784 lots of 25 tonnes each, higher than the usual 25,000 lots.

But despite short-term weakness, market participants said palm oil fundamentals remained intact, on hopes that stocks will continue to ease on lower production and a demand recovery.

Malaysian palm oil stocks fell to 2.44 million tonnes in February from 2.58 million in January, thanks largely to a near 20 percent drop in production. 

Export demand for the March 1-10 period was flat with a month ago, with traders now shifting their focus to the March 1-15 data due on Friday for a better indication of the demand trend.

Crude palm oil shipments fell by more than half after Malaysia raised its export tax for the grade to 4.5 percent from zero percent. Top rival Indonesia increased its tariff to 10.5 percent from 9 percent for the month.

In other markets, Brent futures eased on Wednesday as Asian equities lost ground on concerns their recent rally was running out of steam, but expectations of steady global consumption growth and a surprise fall in U.S. stockpiles held the benchmark above $109 a barrel.

In other vegetable oil markets, U.S. soyoil for May delivery edged down 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange lost 1.8 percent.

Regional Equities - BANGKOK, March 13 (Reuters) - Southeast Asian stock markets ended mostly lower on Wednesday as weaknesses in Asia weighed on appetite for risk assets, with losses in large-caps and financials pulling Singapore, Malaysia and Indonesia down to their lowest close in nearly a week.

Singapore' Straits Times Index was down 0.4 percent at 3288.52, paring gains from the past two sessions. Jakarta's Composite Index (JCI) slid 0.4 percent to 4,835.44, playing catch-up with regional losses, after being shut on Tuesday.

CIMB strategists maintained an 'overweight' rating on Indonesia and kept its JCI index target at 5,100, reflecting its earnings upgrades of listed firms.

"An upward earnings revision for the second month in a row in February by 1 percent was rewarded with an impressive 8 percent gain in the JCI during the month," they wrote in a report dated March 12.

"We stay overweight for now, betting on further earnings upside. Our March picks center mainly on mid- and small-cap growth and value stocks in property and banking," it said.

Shares in PT Bank Mandiri Persero Tbk, among CIMB's top picks in March, eased 0.5 percent to 9,900 rupiah. The stock hit a record close of 10,050 rupiah on Feb. 28.

Kuala Lumpur's Composite Index , Asia's worst performer this year, fell 0.6 percent to 1,646.22. Among losers, CIMB Group Holdings Bhd shed nearly 2 percent.

In Singapore, Keppel Corp Ltd was down 1.1 percent after the world's largest builder of offshore oil rigs lost a deal worth $1.2 billion.

After a rangebound session, the Thai index ended up 0.13 percent at 1,578.70, a new 19-year closing high. The Philippine index was down 0.15 percent at 6,776.56 while Vietnam fell for a second day, down 0.5 percent. 

RTRS - PREVIEW-India's Feb palm oil imports drop on duty rise

NEW DELHI, March 12 (Reuters) - India's palm oil imports are likely to have dropped in February from an all-time high the previous month, as a duty hike to curb cheap imports from Southeast Asia and higher stock levels slowed overseas purchases, a Reuters survey showed on Tuesday.

India is the world's biggest importer of vegetable oils and leading producers Indonesia and Malaysia have been vying to make their oils more attractive by varying tax levels. India has retaliated with an import duty hike of its own.

New Delhi slapped a duty of 2.5 percent on crude palm oil during the second half of January to curb imports, but refiners have demanded a further rise to protect themselves and domestic oilseed growers.

"The small duty hike with high level of stocks is expected to lower monthly palm oil imports," said Govindbhai G. Patel, a trader based in the western oilseed centre of Rajkot.

India's total stocks of edible oil may have hit a record in February at around 1.9 million tonnes, B.V. Mehta, the head of industry body the Solvent Extractors' Association (SEA), which publishes the import data, said a week ago.

Stocks are shifting from producing countries to consumers, with both India and China, the other major world buyer, taking advantage of cheap palm oil and lower import tariffs to ramp up purchases while holding down the impact on inflation.

Patel also said imports had been trimmed by expectations for a further hike in the import duty in the Feb. 28 budget and higher domestic cooking oil supplies as the rapeseed harvest rolled in. However, the budget omitted any such duty increase.

Palm oil imports are forecast to have dropped 11.1 per cent to an average of 794,000 tonnes in February, the survey of five traders showed, with about 150,000 tonnes of refined palm oil imports.

Imports of vegetable oils, including non-edible oils, fell 15.2 percent to 981,500 tonnes in February from the all-time high of around 1.2 million, mainly due to the decline in palm oil imports, the survey showed.

"Imports could be down in March to about 800,000 tonnes, due to the high level of imports during the last two months," said R.K. Singhal, an analyst based in New Delhi.

Imported refined palm oil was quoted at $860 per tonne on the country's west coast, while the delivered price for crude palm oil was $830 per tonne, narrowing the spread between the two palm variants from around $70 a tonne a month ago.

India imports 8 million to 9 million tonnes a year, or about half its total demand. Palm oil accounts for about 80 percent of imports.

As India's population grows in size and wealth, demand for cooking oils is rising. New Delhi tries to encourage local oilseed production, partly by guaranteeing minimum prices to farmers, but has had limited success.

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

Soyoil and sunflower imports are also expected to have declined last month after huge imports in the previous month, for use at celebrations during the wedding season just ending.

Soyoil imports are likely to have fallen 13.6 percent to 89,000 tonnes last month, while sunflower imports could fall by 43.2 percent to 74,000 tonnes from the previous month.

The survey showed average estimated stocks at Indian ports at the end of February could go up 14 percent to 883,333 tonnes from January, largely from the higher imports. SEA's estimates include pipeline stocks.

RTRS - Brazilian problems may firm soybean price into April -Oil World

HAMBURG, March 12 (Reuters) - Soybean prices could be boosted well into April by transport problems in key exporter Brazil but could then be weakened by possible record soybean plantings in the United States, Hamburg-based oilseeds analysts Oil World said on Tuesday.

“Soybean prices may remain firm in March and perhaps the first half of April,” Oil World said. “By that time exports from South America should be in full swing and the USDA (U.S. Department of Agriculture) planting intentions report may have confirmed the outlook for a record soybean acreage this spring, paving the way for a price setback.”

Global soybean consumers are urgently awaiting Brazilian and Argentine soy harvests in early 2013 to relieve the tight global soybean market, where the U.S. is carrying the main burden of meeting world export demand despite a drought-hit 2012 crop.

Loading delays of up to 60 days are reported at Brazilian ports as the country struggles to export huge new soybean and corn crops. This has returned soybean demand to the United States despite tight U.S. supplies which may compel U.S. soybean imports in coming months.

“Manifold logistical problems kept Brazilian soybean exports below the world market’s requirements in February and this will probably also occur in the first half of March,” Oil World said.

Soybean price weakness had been expected early in 2013 as South American harvests enter the global market and price firmness created by Brazilian transport bottlenecks could encourage more U.S. soy sowings, Oil World said.

“The severe depletion of U.S. stocks and the recent price development is signalling U.S. farmers to step up soybean plantings,” Oil World said.

U.S. end-of-season soybean stocks are forecast to fall to their lowest in nine years while the stocks-to-consumption ratio was projected at the tightest since the mid-1960s, according to USDA data.

The USDA will estimate spring plantings of U.S. corn, soybeans, wheat and other crops on March 28 and Oil World is expecting a hefty expansion of U.S. soybean sowings.

“Historically tight domestic (U.S.) supplies and the need for an extreme demand-rationing in the remainder of 2012/13 are supporting the outlook for a further expansion of U.S. soybean plantings this season, probably to an all-time high of 78-79 million acres,” it said.

This would compare to 76.1 acres harvested in the United States in 2012.

Oil World stressed the estimate is very tentative with weather and price developments in coming weeks key factors to watch.

Trader's highlight

DJI - NEW YORK, March 12 (Reuters) - The S&P 500 ended lower on Tuesday, breaking a seven-session string of gains as investors pulled back from technology and financials, but the Dow eked out the smallest of gains to finish at another all-time closing high.

The Dow also hit another lifetime intraday high, while the S&P 500 remains within reach of its all-time closing high of 1,565.15, set on Oct. 9, 2007.

The market's rally in recent months has driven the Dow up 10.3 percent for the year and lifted the S&P 500 by 8.9 percent for 2013 so far. Signs of improvement in the economy and the Federal Reserve's quantitative easing have helped to propel the advance.

"You have a little bit of buyers' exhaustion at this juncture. We've had this move that has been startlingly smooth in terms of progression of advances, both since the beginning of the year and certainly over the last six to seven trading sessions," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

"Investors are waiting for this collective correction ... for some time, and it's teasing more and more buyers out of the market."

The Dow Jones industrial average rose just 2.77 points, or 0.02 percent, to 14,450.06, another record close. Earlier, the Dow climbed to a lifetime intraday high of 14,478.80.

The Standard & Poor's 500 Index dipped 3.74 points, or 0.24 percent, to finish at 1,552.48 - about 13 points below its record closing high.

The Nasdaq Composite Index slipped 10.55 points, or 0.32 percent, to close at 3,242.32.

Brent Crude Oil - NEW YORK, March 12 (Reuters) - Brent crude oil fell on Tuesday after seesawing with the euro and the dollar, and as OPEC's trimmed forecast for U.S. and euro zone economic growth also applied pressure.

Brent April crude fell 57 cents, or 0.52 percent, to settle at $109.65 a barrel, having traded from $109.30 to $111.20.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell on technical selling and pressure from the advancing South American harvest, traders said.

 

·         Concerns eased about sales of Brazilian soybeans being  switched to U.S. origins after no new sales of old-crop U.S. soybeans were announced by USDA.

·         The soybean harvest in Brazil's top soy state Mato Grosso is 75 percent complete, according to AgRural consultancy.

·         Nearby CBOT soybean contracts lost ground to back months as traders took profits by unwinding May/July and July/November spreads.

 

·         Cash basis bids for soybeans shipped by barge to the U.S.   Gulf were steady to weaker at midday on Tuesday, although nearby  values remained at a premium to deferred bids.

 

·         Soybean prices could be elevated well into April by transport problems in key exporter Brazil but could then come under pressure from possible record U.S. soybean plantings -  oilseeds analysts Oil World. 

 

·         Wetter weather is expected in Argentina this week and a frost was possible, but it should occur south of the big soybean areas, a U.S. meteorologist said.

 

·         Analyst UkrAgroConsult said Ukraine could increase its  rapeseed harvest by about two-thirds and raise its soybean output by 17 percent in 2013.

 

·         CBOT reported five March soybean deliveries, one soymeal  delivery and one soyoil delivery.

BMD CPO - SINGAPORE, March 12 (Reuters) - Malaysian palm oil futures edged lower on Tuesday, tracking weaker overseas soybean oil markets, although a fall in palm oil stockpiles helped keep losses in check.

U.S. soybeans dropped on Tuesday after data from the U.S. Department of Agriculture showed slower export demand for the oilseed, also weighing on soybean oil markets.

U.S. soyoil for May delivery  edged down 0.8 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange fell 1.1 percent, extending losses to its lowest since July 2010.

"The palm market is weaker on the back of CBOT and Dalian soybean oil but it should be supported at 2,400 ringgit," said a trader with a foreign commodities brokerage in Malaysia.

"Production should go down further and exports should be slightly better than last month, so we expect to see further drawdown in stocks."

By Tuesday's close, the benchmark May contract on the Bursa Malaysia Derivatives Exchange had inched down 1.6 percent to 2,412 ringgit ($775) per tonne. Prices traded in a range between 2,406 and 2,442 ringgit.

Total traded volume stood at 39,868 lots of 25 tonnes each, higher than the usual 25,000 lots.

But despite short-term weakness, analysts expect prices to pick up, as palm oil stocks continue to ease on lower production and a demand recovery.

"We continue to expect crude palm oil prices to trade higher in the coming months. After the current low-yield season, palm oil closing stocks are expected to continue to trend lower on demand recovery, boosted by an abnormally high discount to soybean oil," Malaysia's Affin Investment Bank said in a research note on Tuesday.

Palm oil stocks in the world's second-largest producer of the tropical oil fell to 2.44 million tonnes in February from 2.58 million in January, industry regulator the Malaysian Palm Oil Board said on Monday.

Cargo surveyors reported growth in exports to be almost flat for the March 1-10 period from a month ago, and traders will be looking out for export data for the first half of the month, due on Friday, to further gauge the demand trend.

In other markets, Brent futures slipped below $110 a barrel on Tuesday on worries of a slowdown in demand growth in China and the United States, two of the world's biggest oil consumers, with a rise in the dollar weighing further on the market. 

Regional Equities - BANGKOK, March 12 (Reuters) - Southeast Asian stock markets ended mostly flat to weaker on Tuesday, erasing earlier gains in line with Asian equities, with Thai benchmark index retreating from a 19-year peak and the Philippine main index extending losses for a second session.

Among recent outperformers that led the declines were Malaysia's Axiata Group Bhd , Philippine Long Distance Telephone Co. and Thailand's LPN Development Pcl

Bangkok's SET index was down 0.06 percent at 1,576.68. It rose in morning trade to 1,586.41, the highest level since January 1994. The market saw a net foreign buying of $44.41 million, stock exchange data showed.

The Thai baht  hit a 28-month high against the dollar on Tuesday, fuelled by strong demand from some offshore hedge funds. As of 1029 GMT, the Thai currency was at 29.60, compared with Monday's close of 29.72.

The Philippine index fell 0.4 percent to 6,786.42, after Monday's 0.29 percent loss. Malaysia's benchmark index edged down 0.09 percent to 1,656.54 as retail and local institutions were net sellers, according to stock exchange data.

Business times - Malaysia a winner in equity play

Foreign investors are continuing to plough money into Malaysian equities, buying RM1.12 billion in the open market in the week ended March 8 2013, the highest rate in 49 weeks.

Read more: 

http://www.btimes.com.my/Current_News/BTIMES/articles/20130311234934/Article/index_html#ixzz2NIyTFGsv

Bloomberg - Soybeans Drop on Signs Brazil Is Gaining Market Share From U.S.

Soybeans declined from the highest closing level in more than four weeks on signs demand for the U.S. crop may be waning as farmers accelerate harvesting in Brazil, poised to be the largest exporter this year.

The oilseed for May delivery lost as much as 0.7 percent to $14.69 a bushel on the Chicago Board of Trade and was at $14.7075 by 10:12 a.m. Singapore time. The trading volume was 33 percent less than the 100-day average for that time of day. Futures closed at $14.795 a bushel yesterday, the highest settlement since Feb. 7.

Soybeans inspected before shipment at U.S. ports fell 58 percent to 17 million bushels in the week ended March 7, from a week earlier, according to the U.S. Department of Agriculture. In Brazil, farmers have collected about 48 percent of the crop as of March 8, compared with 46 percent a year earlier, researcher Safras & Mercado said in a report yesterday.

Full article : 

http://www.bloomberg.com/news/2013-03-12/soybeans-drop-on-signs-brazil-is-gaining-market-share-from-u-s-.html

Trader's highlight

DJI - NEW YORK, March 11 (Reuters) - Wall Street rose modestly on Monday, lifting the Dow to another record and giving the S&P 500 its seventh straight advance as early weakness enticed buyers. The gains briefly lifted the benchmark S&P 500 index to its highest intraday level since October 2007.

With the slight advance, U.S. stocks continued last week's rally that took the Dow Jones industrial average to record highs. The S&P 500's record closing high stands at 1,565.15, which it reached on Oct. 9, 2007.

Wall Street's "fear gauge" closed at its lowest level since February 2007, suggesting investors were not spooked by Monday's brief pullback, despite expectations by many investors that a correction may be looming. The CBOE Volatility Index , known as the VIX, dropped 8.2 percent to 11.56.

U.S. equities have rallied strongly since the start of the year, helped by signs of improvement in the economy and the support of equities by the Federal Reserve's quantitative easing program. These factors have contained recent pullbacks as investors have used them as a buying opportunity.

"These dips are consistently bought. There is definitely a soft floor for the market," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

"It’s a QE bid," Kenny said, referring to the Fed's policy of keeping short-term interest rates near zero since late 2008. "Quite frankly, earnings have not disappointed to the point where it is has been disrupted, and there is nothing out there that seems to be getting in the way of this slow but very consistent and methodical drift higher in the market."

But volume was light, with about 5.39 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, below the daily average of 6.47 billion, suggesting the rally may be losing steam.

On Monday, the S&P 500 climbed as high as 1,556.27 - its highest intraday level since Oct. 15, 2007.

The Dow has gained over 10 percent for the year, while the S&P 500 is up more than 9 percent.

Wall Street had traded slightly lower earlier in the day as Italy's credit downgrade and disappointing Chinese economic data gave investors a reason to pause.

The Dow Jones industrial average gained 50.22 points, or 0.35 percent, to 14,447.29, a record closing high. The Standard & Poor's 500 Index rose 5.04 points, or 0.32 percent, to 1,556.22. The Nasdaq Composite Index added 8.51 points, or 0.26 percent, to close at 3,252.87.

Brent Crude Oil - NEW YORK, March 11 (Reuters) - Brent crude futures fell on Monday, pressured by disappointing data from world No. 2 oil consumer China, but settled well above the session low.

Brent April crude fell 63 cents, or 0.57 percent, to settle at $110.22 a barrel, having reached $110.72 and fallen to as low as $109.53.

CBOT Soybean  - March 11 (Reuters) - Soybean futures on the Chicago Board of Trade rose on Monday on firm cash markets and expectations that delays in loading soybeans out of Brazil would shift more export demand to the United States, traders said.

• Nearby contracts in soybeans and soymeal gained against back months on spreads.

• Firming cash values underpinned soyoil, although gains in soyoil futures trailed those in soybeans and soymeal.

• Basis bids for soybeans shipped by barge to the U.S. Gulf were steady to higher early on Monday on demand for nearby shipments and limited supplies in the export pipeline. Traders expect additional old-crop soybean sales due to logistical problems in shipping Brazilian soybeans.

• Argentine soy and corn fields received little rain in recent days and could be hit by frost late this week in southern Buenos Aires, a local meteorologist said.

• Export inspections were disappointing. USDA reported weekly U.S. soybean inspections at 17.114 million bushels, well below a range of trade estimates for 30 million to 40 million.

• USDA corrected a sales announcement from March 5 to say private exporters reported sales of 225,000 tonnes of soybeans and 120,000 tonnes of corn for delivery to China in 2013/2014, instead of 345,000 tonnes of soybeans to China for 2013/14.

• CBOT reported seven soyoil deliveries against March futures, along with one soymeal delivery and five soybean deliveries.

BMD CPO - SINGAPORE, March 11 (Reuters) - Malaysian palm oil futures were almost flat on Monday, as lower palm oil stocks in the country offset a slightly bearish report by the U.S. Department of Agriculture (USDA) last week.

The USDA raised its global stockpile estimate for soybeans against expectations of a slight decline, and as a result also increased the inventory of soybean oil, a scenario that could shift some demand away from competing palm oil.

"By itself, the news of the higher soybean oil inventory should be slightly negative to crude palm oil prices as both commodities are commonly used as the substitute for each other," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, told clients in a note.

"But despite the short-term weakness seen, price downside should be limited, due to the expected decline in Malaysia’s palm oil stocks."

Malaysia's February palm oil stocks fell 5.2 percent to 2.44 million tonnes from 2.58 million in January, industry regulator Malaysian Palm Oil Board said after the midday break.

The inventory fall was less than the drop to the 2.42 million level expected in a Reuters survey for stocks in the world's No.2 palm oil producer.

At market close, the benchmark May contract on the Bursa Malaysia Derivatives Exchange was almost unchanged at 2,449 ringgit ($787) per tonne, but was off a high of 2,467 ringgit, a level unseen since Feb. 26.

Total traded volume stood at 31,687 lots of 25 tonnes each, higher than the usual 25,000 lots.

The slightly bearish USDA data and high vegetable oil stocks also weighed on Chinese soybean oil, with the most-active September soybean oil contract on the Dalian Commodity Exchange falling to the lowest since July 2010.

U.S. soyoil for May delivery edged down 0.1 percent in late Asian trade.

Malaysian palm oil export data for March 1-10 failed to lift the market as cargo surveyor Intertek Testing Services reported shipments at 441,025 tonnes, almost flat with last month.

Another cargo surveyor, Societe Generale de Surveillance, reported a slight 2.2 percent increase in exports for the same period.

Crude palm oil exports fell by half from last month as Malaysia raised its export tax for the grade to 4.5 percent this month from zero.

In other markets, Brent futures slipped further below $111 on Monday as the latest data from China pointed to an uneven economic recovery in the world's second-biggest oil consumer and raised demand growth concerns, while a stronger dollar put more pressure on prices.

Regional Equities - BANGKOK, March 11 (Reuters) - Southeast Asian stock markets ended mixed on Monday, with Indonesia retreating from last week's record high ahead of a market holiday, while Malaysia posted modest gains as foreign investors continued to buy into the laggard market.

Jakarta's Composite Index was down 0.4 percent at 4,854.31, after a record close for a third straight session on Friday at 4,874.50. Investors sold recent gainers such as PT Perusahaan Gas Negara Tbk , which dropped 4.6 percent.

Shares in Perusahaan Gas Negara hit a record close of 5,450 rupiah on Friday amid optimism about its acquisitions to help boost growth.

Indonesian markets will be shut on Tuesday for a national holiday, reopening on Wednesday.

The Philippines edged down 0.3 percent at 6,813.95, hovering near the record close of 6,835.21 hit on March 6.

Kuala Lumpur's Composite Index gained 0.24 percent as foreign investors bought a net 318.68 million ringgit ($103 million), countering selling by retail and institutional investors, stock exchange data showed. 

Singapore's Straits Times Index edged up 0.1 percent, led by a 3.4 percent gain in Singapore Press Holdings Ltd after its plan to list a real estate investment trust.

Losers in the city-state included Wilmar International Ltd , which fell almost 4 percent. A report that Norway's $710 billion sovereign wealth fund has pulled out of 23 Asian palm oil companies weighed on the stock. 

Bangkok's SET index gained 0.7 percent to 1,577.65, a new 19-year high as investors bought index heavyweights, with PTT Pcl  rising 2.4 percent and Advanced Info Service Pcl  climbing 3.2 percent.

The Ho Chi Minh Stock Exchange's VN Index  gained 1.2 percent, regaining much of its lost ground. It fell 1.4 percent last week, when it was Southeast Asia's worst performer.