Trader's highlight

DJI - NEW YORK, April 10 (Reuters) - U.S. stocks climbed 1 percent on Wednesday, with both the Dow and S&P 500 ending at historic highs as cyclical shares led the way higher for a second straight day.

The S&P 500 finally joined the new all-time intraday high club, surging past a record set on Oct. 11, 2007. The index has struggled to breach the level of 1,576.09 for the past several weeks, but broke above it on Wednesday to rise as high as 1,589.07. The Dow also hit another intraday milestone, rising as high as 14,826.66.

"The path of least resistance for the market remains higher, and despite some mixed economic data, investors are concluding that stocks remain a better place to be than risk-free assets," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Global Investments, which has about $760 billion in assets under management.

Gains were broad, with all but two of the S&P 500's 10 primary sectors up more than 1 percent. More than three-fourths of stocks traded on the Nasdaq ended higher, while 73 percent of New York Stock Exchange-listed shares did.

In another encouraging sign, volume was higher than it has been recently, with about 6.24 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT. However, volume remained below the daily average so far this year of about 6.36 billion shares.

With the day's gains, major indexes are up about 10 percent for the year, but many investors viewed the strength in cyclicals - groups closely tied to the pace of economic growth - as a sign that the rally still has staying power. The Dow Jones Transportation Average , viewed as a leading indicator for the broader market, rose 1.8 percent.

The Dow Jones industrial average jumped 128.78 points, or 0.88 percent, to 14,802.24 at the close. The Standard & Poor's 500 Index climbed 19.12 points, or 1.22 percent, to 1,587.73. The Nasdaq Composite Index shot up 59.40 points, or 1.83 percent, to close at 3,297.25.

The day marked the best session for both the Dow and the S&P 500 since Feb. 27, and the best for the Nasdaq since Jan. 2. The Nasdaq climbed to a session high of 3,299.15, its highest since November 2000.

"After we broke above the high, we saw momentum accelerate as investors saw it as a release of resistance," said Katie Stockton, chief market technician at MKM Partners in Greenwich, Connecticut. "By definition, there is no more resistance for the S&P now that we're at new highs.

Oils - NEW YORK, April 10 (Reuters) - Brent crude oil prices fell on Wednesday, dragged down by a steep sell-off in U.S. gasoline futures after a U.S. government report showed an unexpected build in domestic gasoline inventories.

U.S. crude oil inventories rose by 250,000 barrels to reach the third-highest level on record for the week ending April 5, according to data released by the U.S. Energy Information Administration. The rise was less than the 1.4 million barrels forecast by analysts polled by Reuters.

"People in today's trade are not just selling a few contracts of gas, they're also selling the gas crack spread, selling RBOB and buying U.S. crude against it," said Timothy Evans, an energy analyst at Citi Futures Perspective in New York.

The U.S. government's inventory data arrived after OPEC trimmed its forecast for global demand growth on Wednesday, echoing similarly low demand expectations cited earlier this week by the U.S. Energy Information Administration (EIA) in its monthly outlook.

"We have more than ample supplies of oil on hand, so we don't have real support for rising prices from that factor," said Gene McGillian, an analyst with Tradition Energy in Connecticut.

Brent May crude settled down 44 cents at $105.79 a barrel, having retreated from a session high of $106.47. Brent's May contract expires on Monday.

CBOT Soybean - April 10 (Reuters) - Soybean futures on the Chicago Board of Trade ended lower Wednesday on a larger-than-expected U.S. government forecast for 2012/13 world soybean stocks, traders said.

• Trade was volatile in the minutes after the U.S. Department of Agriculture released its monthly supply/demand report. Spot soybeans surged to a nearly two-week high before plunging, then later pared their losses.

• Soymeal followed soybeans lower, while soyoil posted modest gains.

• USDA raised its forecast for 2012/13 world soybean stocks to 62.6 million tonnes from a March forecast of 60.2 million tonnes, going against trade expectations for a reduction.

• USDA cut its forecast of top buyer China's 2012/13 soybean imports to 61 million tonnes from 63 million.

• On the bullish side, USDA left its forecast for U.S. 2012/13 soy ending stocks unchanged at 125 million bushels, below analysts' average estimate of 136 million.

• Also bullish, U.S. cash soybean bids remained firm, supported by the slow pace of farmer sales. 

• Trade expects USDA's weekly export sales report on Thursday to show soybean sales at 175,000 to 500,000 tonnes for 2012/13, and 200,000 to 500,000 tonnes for 2013/14. 

• Crop forecaster Lanworth, a unit of Thomson Reuters, cut its U.S. soy production forecast to 3.380 billion bushels from 3.455 billion, citing expectations for a higher ratio of corn to soybean acreage in Kansas, Nebraska, Minnesota, North Dakota and South Dakota. 

• Rain and snow in the Plains and Midwest will slow or stall corn plantings while easing drought stress, meteorologist Andy Karst of World Weather Inc said. Delays in corn plantings will be widespread this week and only sporadic seedings will take place next week. 

• China imported 3.84 million tonnes of soybeans in March, up 32.4 percent from February but down 20.5 percent from a year ago, customs data showed. Port congestion in Brazil delayed some shipments.

• Chinese imports are expected to pick up from March, but outbreaks of a new strain of bird flu in some areas could hurt restocking of soymeal for feed for poultry, traders said. 

Argentina Soybean - BUENOS AIRES, April 10 (Reuters) - Argentina's closing soy prices and trends on Wednesday:

• In the main grains market of Rosario, soy closed at 1,580-1,600 pesos ($307/$311) per tonne compared with Tuesday's 1,608 pesos per tonne, dragged down by losses in U.S. soy futures.

• Trade volume dropped to a modest 12,000 tonnes from 20,000 tonnes in the prior session.

• Soybean futures on the Chicago Board of Trade ended lower Wednesday on a larger-than-expected U.S. government forecast for 2012/13 world soybean stocks, traders said.

• Rosario soy for delivery in May, which is quoted in U.S. dollars, closed at $315-$316 per tonne up from $314 on Tuesday.

• In the southern grains port of Quequen, where no official price was listed for Tuesday, soy ended at 1,550 pesos per tonne.

BMD CPO - SINGAPORE, April 10 (Reuters) - Malaysian palm oil futures edged lower on Wednesday, weighed down by recent strength in the ringgit, although losses were limited after a report showed stocks dropped to their lowest in seven months as exports outpaced weak output growth.

Prices were expected to rise after the midday break as the Malaysian Palm Oil Board (MPOB) reported a steep 10.9 percent drop in stocks to 2.17 million tonnes, far exceeding market expectations of a 3.8 percent drop.

But the ringgit's recent rise on short-covering ahead of the upcoming election has made crude palm oil more expensive for overseas buyers and lowered refiners' margin, keeping some investors on the sidelines.

The currency hit a near 3-month high against the dollar on Wednesday after the government said the Southeast Asian nation will hold its general elections on May 5. 

"The market is facing selling pressure with the strengthening ringgit as it dampens refining margin," said a dealer with a foreign commodities brokerage in Malaysia.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange fell 1 percent to close at 2,370 ringgit ($783) per tonne -- also the low for the day. Prices touched a high of 2,419 ringgit on Tuesday, a level last seen on March 28.

Total traded volumes stood at 34,101 lots of 25 tonnes each, slightly lower than the average 35,000 lots seen so far this year.

Exports of Malaysian palm oil products for April 1 to 10 inched up 3.5 percent to 456,440 tonnes, compared with 441,025 tonnes shipped during the same period last month, cargo surveyor Intertek Testing Services said on Wednesday.

Palm oil stocks are now closer to the psychological 2-million-tonne level. Leading analyst Dorab Mistry has forecast prices could rise to 2,400 to 2,700 ringgit by the end of May as stockpiles fall below that level.

In other markets, Brent crude futures steadied around $106 per barrel on Wednesday after China's total imports surged in March, suggesting that recovery in the world's No 2 oil consumer is gathering momentum.

In vegetable oil markets, U.S. soyoil for May delivery edged 0.1 percent lower in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.3 percent higher.

RTRS - Indian soymeal exports to Iran surge this year- Oil World

HAMBURG, April 9 (Reuters) - Indian soymeal exports to Iran have risen sharply in early 2013 despite trade sanctions and high Indian prices, Hamburg-based oilseeds analysts Oil World said on Tuesday.

“India has become the key supplier of soymeal for Iran owing to the western sanctions,” Oil World said.

India exported 142,000 tonnes of the animal feed to Iran in March against only 40,000 tonnes in March 2012, Oil World said. This followed a sharp rise in February exports to Iran.

India’s October 2012 to March 2013 soymeal exports to Iran shot up to 430,000 tonnes from only 76,000 tonnes in the same period the year before, Oil World said.

The United States and European Union have toughened trade sanctions, meant to discourage Tehran's disputed nuclear programme, which they say has a military purpose. Iran rejects these allegations and says its atomic work is peaceful.

The sanctions do not target food shipments, but financial measures have frozen Iranian firms out of much of the global banking system, complicating payments for imports on which Iran relies for much of its food and animal feed.

“Iran was again and by far the largest destination for Indian soymeal in March,” Oil World said.

It is believed another 200,000 tonnes of Indian soymeal is scheduled for export to Iran in April, for which Iran will pay with revenues from crude oil sales, it said.

India has been paying for Iranian crude oil imports in rupees, which can in turn be used by Iran to buy Indian commodities including rice and soymeal.

Iran is buying more soymeal despite a rise in Indian prices to levels sharply above those of rival South American producers, which has cut demand for Indian soymeal from other potential buyers, Oil World said.

“Demand for Indian soymeal slowed down pronouncedly in recent weeks as a result of widening price premiums over South American origin, to which most importers have shifted in the meantime,” it said.

“The export price of soymeal in India climbed further to $585 a tonne on April 4, about $150-$160 (a tonne) above prices in Brazil,” it said.

RTRS - Bad weather threatening Argentine soybean crop -Oil World

HAMBURG, April 9 (Reuters) - Concern is rising that Argentina’s new soybean harvest now being gathered may be reduced by the double blow of heavy rains following drought, Hamburg-based oilseeds analysts Oil World said on Tuesday.

“Soybean prospects have deteriorated,” Oil World said. “There is currently a wide range of (crop) estimates between 48 and 52 million tonnes, but we expect that the high end of the range will soon be reduced owing to confirmation of crop losses in the north from drought and losses in central and southern Argentina following the recent substantial rainfall and flooding.”

Argentina harvested 39.7 million tonnes of soybeans in early 2012. Oil World still forecasts Argentina’s 2013 soybean crop at 48.5 million tonnes.

Heavy rains interrupted soybean harvesting in Argentina's south and central grains belt over the past week, the Buenos Aires Grains Exchange said on Thursday.

Large Argentine and Brazilian soybean crops now being harvested are urgently needed by global consumers following tight supplies in past months following a poor U.S. harvest in 2012 and record high soybean prices in September last year.

But South American new crop exports are still being hampered by transport and port loading problems, despite hopes that larger shipments were on the way, Oil World said.

“The volumes of new crop soybeans and products from South America are still insufficient to satisfy world demand, primarily owing to the logistical bottlenecks in Brazil,” Oil World said.

This is reflected in “surprisingly large” weekly U.S. export sales of 392,700 tonnes reported on Apr. 4, it said. 

“Importers obviously need (U.S. soybeans) to offset part of the export delays in South America,” Oil World said.

Trader's highlight

DJI - NEW YORK, April 9 (Reuters) - U.S. stocks advanced on Tuesday, with the Dow closing at a record high on a rally in cyclical shares and as earnings season started to heat up.

With the day's advance, the S&P 500 again neared its all-time intraday high of 1,576.09, recovering from steep losses last week, the index's worst of 2013.

The return to near-record levels indicates that investors are again using market declines as buying opportunities. The top sectors of the day, technology and energy, are groups that are closely tied to the pace of economic growth.

"It's encouraging that we're seeing cyclical sectors lead the rally. It's a healthy sign - investors believe the market can continue to run higher," said Joseph Tanious, global market strategist at J.P. Morgan Funds in New York.

The Dow Jones industrial average  advanced 59.98 points, or 0.41 percent, to 14,673.46, a record closing high. The Standard & Poor's 500 Index gained 5.54 points, or 0.35 percent, to 1,568.61. The Nasdaq Composite Index added 15.61 points, or 0.48 percent, to close at 3,237.86.

Stocks also got a boost from a promising start to the earnings season. While only 5 percent of S&P 500 companies have reported results so far, almost three-quarters of them have topped expectations, according to Thomson Reuters data. Still, profits are seen rising just 1.5 percent from a year-ago quarter, down from estimates in January for growth of 4.3 percent.

"Expectations have gotten managed down to the point where we could more easily see companies beat expectations, making it easier for us to pop," said Kristen Scarpa, a New York-based investment strategist at Barclays, which has a year-end target of 1,595 for the S&P 500.

Oils - NEW YORK, April 9 (Reuters) - Brent crude oil futures rose on Tuesday, posting their biggest gain since late December as a weak dollar and tame Chinese inflation data drew investors to commodities.

U.S. crude oil prices also rose, reaching $94.48 during the session and briefly exceeding the 50-day moving average of$94.44, a technical level closely monitored by chart-watching analysts and traders.

But Brent prices rose more sharply, allowing its premium over U.S. crude to widen past $12, a day after it narrowed to just over $11, the lowest level since June.

"The spread had narrowed considerably over the past few weeks, so we have some unwinding of that spread," said Stephen Schork, the editor of commodity newsletter The Schork Report.

"That, coupled with the selloff in the dollar, was pushing money into the oil market," Schork said.

The euro rose to $1.31, its highest since mid-March, making dollar-denom`inated commodities more affordable for holders of euros.

Chinese government data showed inflation slowing. This eased concerns the Chinese central bank would tighten monetary policy.

"The idea that central banks are going to continue in their monetary policies and we’ll see liquidity continue to expand makes commodities an attractive investment, and that’s providing support for oil prices," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

Brent May crude closed at $106.23 per barrel, up $1.57. During the session it fell as low as $104.27, not far from the lowest price since July, the previous session's low point of $103.40.

U.S. May crude closed at $94.20 a barrel, up 84 cents. It touched a session low of $92.86.

The spread between Brent and U.S. West Texas Intermediate (WTI) closed at $12.03 a barrel, widening from $11.30 at the previous session's close.

CBOT Soybean - Soybean futures on the Chicago Board of Trade rose for a second straight session on Tuesday, rebounding off a 10-month low set last week as firm cash markets lifted nearby contracts, traders said.

·         The May/July soybean spread peaked at 27 cents,   premium May, its biggest inverse in 6-1/2 months.

·         Traders adjusted positions a day ahead of USDA's monthly supply/demand reports. The average estimate of U.S. 2012/13 soy ending stocks, among analysts surveyed by Reuters, was 136 million bushels, up 9 percent from USDA's March figure of 125 million, but some traders covered short positions, wary of a  smaller-than-expected figure. 

 

·         Bull-spreading noted in soymeal but slowing export demand    for U.S. soymeal limits gains.

 

·         Fears subside about bird flu hurting feed demand in China;  Dalian September soymeal futuresclose higher, halting a  five-session slide.

 

·         Brazil's government supply agency, Conab, lowered its   estimate of the country's 2012/13 soybean harvest to 81.9 million tonnes, from 82.1 million in March. 

 

·         A double-blow of heavy rains following drought has lowered    soy production prospects in Argentina, Hamburg-based oilseeds  analysts Oil World said. 

·         Indian soymeal exports to Iran have risen sharply in early  2013 despite trade sanctions and high Indian prices - Oil World.

BMD CPO - SINGAPORE, April 9 (Reuters) - Malaysian palm oil futures ended slightly lower after hitting a near two-week high on Tuesday as fears over the bird flu outbreak in China and its impact on soybean prices outweighed hopes for lower palm inventory in the Southeast Asian nation, the world's No.2 producer.

Industry regulator, the Malaysian Palm Oil Board (MPOB), will on Wednesday report stock levels for March, with a Reuters poll predicting a drop to 2.35 million tonnes from 2.44 million in February.

"The rise in Dalian palm and soy and also the overnight gain in U.S. soy are helping the rally, while traders are also positioning ahead of MPOB data," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore.

"But the rise may be capped due to the bird flu situation in China."

Traders are keeping a close watch on the development of a new strain of bird flu in China, fearing that it could cut demand for soy used in animal feed in the world's top importer of the bean, although the World Health Organization said it was no cause for panic.

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

The benchmark June contract on the Bursa Malaysia Derivatives Exchange closed 0.2 percent lower at 2,395 ringgit ($789) per tonne. Prices earlier touched a high of 2,419 ringgit, a level last seen on March 28.

Total traded volumes stood at 29,311 lots of 25 tonnes each, compared to the average 35,000 lots seen so far this year.

Market participants are also looking out for Malaysian palm export data for the first 10 days of April, due on Wednesday. Shipments edged slightly higher for March, the first increase in four months, thanks to higher demand for refined products. 

In other markets, Brent crude oil rose above $105 per barrel on Tuesday, rallying from an eight-month low after China's inflation slowed, giving it room to keep monetary policy easy and support oil demand in the world's second-biggest consumer.

In vegetable oil markets, U.S. soyoil for May delivery  inched up 0.1 percent in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.5 percent higher.

Regional Equities - April 9 (Reuters) - Southeast Asian stocks ended firmer on Tuesday with Malaysia edging up to a three-month high as a solid start to the United States earnings season helped boost investor sentiment.

Malaysia edged up 0.1 percent to hit a near three-month closing high with a $36.53 million foreign inflow.

Singapore .gained 0.4 percent, led by a 1.4 percent rise in Southeast Asia's largest telecom operator Singapore Telecommunications Ltd

An increase in quarterly profit of Alcoa Inc helped boost sentiment, easing concerns about U.S. corporate results in the first three months of 2013.

Indonesian stocks  edged up 0.04 percent, recovering from their two-week lows.

Nomura Equity Research said on Tuesday a correction is likely in Indonesian stocks in the second quarter of 2013 following an expected softness in first quarter earnings due to cost and competition pressures.

Vietnam, the region's best performer so far this year, gained 0.8 percent as funds added blue chips.

Bucking the trend, Thailand stock market ended 1.3 percent weaker, but the head of its bourse said buying would return after Songkran holiday from April 13-16.

"Investors should not be too concerned with the market weakness. After Songkran holiday, I expect investors to resume buying again," The stock exchange of Thailand president Charamporn Jotikasthira told reporters on Tuesday.

Trader's highlight

DJI - NEW YORK, April 8 (Reuters) - U.S. stocks ended a volatile session higher on Monday as investors looked ahead to an earnings season expected to show modest growth despite concerns about the economy's health.

Wall Street fluctuated between positive and negative territory for much of the day before climbing in the final hour of trading, ending near its session highs. However, volume was light and the Dow's gains were limited by a selloff of Johnson & Johnson shares.

Forecasts for first-quarter earnings have been scaled back in 2013, with profits seen rising just 1.6 percent from the year-ago quarter, according to Thomson Reuters data. In January, earnings were seen rising 4.3 percent.

The drop in expectations has come as economic figures suggest the recovery could be less robust than some had thought. Weak corporate results could give investors further reasons to sell, pushing both the Dow and the S&P 500 back from recent all-time closing highs.

"We're waiting for earnings for evidence that the market can be supported at these levels," said Jim Dunigan, chief investment officer at PNC Wealth Management in Philadelphia. "We will see growth in earnings, but clearing the expectations bar could be difficult, which could give us reason to pause."

The Dow Jones industrial average rose 48.23 points, or 0.33 percent, to 14,613.48 at the close. The Standard & Poor's 500 Index gained 9.79 points, or 0.63 percent, to 1,563.07. The Nasdaq Composite Index advanced 18.39 points, or 0.57 percent, to close at 3,222.25.

Stocks have rallied strongly this year with major indexes hitting record highs, helped in part by the Federal Reserve's stimulus program. The S&P 500 is up 9.6 percent for the year so far, while the Dow has gained 11.5 percent.

"A lot of the momentum we had in the first quarter was based on improving economic news, and the jobs report really took the wind out of our sails," said Dunigan, who helps oversee $116 billion in assets. "We're still trying to sift through what that means for our prospects going forward."

Oils - NEW YORK, April 8 (Reuters) - Oil prices edged higher on Monday, lifted by gains in gasoline futures and strong selling of the spread between Brent crude and U.S. crude.

Brent's premium to U.S. West Texas Intermediate futures settled at $11.30 a barrel, after narrowing to just over $11 in afternoon trade, the lowest level since June.

The move extended a trend that has knocked $12 off the key spread since February because of the start-up of new pipeline capacity that will alleviate a glut of crude at the Cushing, Oklahoma, hub for the U.S. contract. In addition, supply concerns around Brent-related crude have eased, weakening the futures contract relative to U.S. oil.

"Improved output of North Sea production and the expected increases later in the year, and the displacement of West African Barrels that were previously bound for the U.S. which are now competing with North Sea barrels for Asian market share," are all contributing to an increase in Brent supply, said John Kilduff, a partner at Again Capital LLC, referring to the decline in U.S. dependence upon North Sea and West African crude which is redirecting those barrels to Asia.

Analysts said the sharp sell off in the spread seen over the past two sessions, from over $13 a barrel last Thursday, could be short-lived, however, and that it may be poised for a rebound.

Outright prices were choppy, with Brent May crude settling up 54 cents at $104.66 a barrel, after reaching a session high of $105.55. Brent hit an eight-month low of $103.62 per barrel on Friday after disappointing U.S. jobs data, and traders said the downtrend could resume again once the market had consolidated.

U.S. May crude settled up 66 cents at $93.36, peaking at $93.75 early Monday following the 4.6 percent week-on-week slide registered on Friday.

CBOT Soybean - Soybean futures on the Chicago Board of Trade ended higher on bargain buying after a three-session slide that sent spot prices to a 10-month low last week, traders said.

 

·         The nine-day relative strength index for May soybeans fell to 25 by Friday, within the technically oversold   range of zero to 30. The RSI rose to 35 by Monday's close. 

 

·         Soyoil posted the biggest gains in the soy complex on a    percentage basis, supported by general strength in the cash soyoil market due to demand from biodiesel producers.

 

·         USDA reported export inspections of U.S. soybeans in the latest week at 15.251 million bushels, within a range of trade  estimates for 12 million to 16 million.

·         Worries about a slowdown in feed demand due to bird flu in  China, the world's biggest soy buyer, hung over the market. The  World Health Organization said the strain of bird flu is no  cause for panic, while the number of people infected rose to 24, with seven deaths.

 

·         Underscoring the bird flu worries, benchmark September  soymeal futures on China's Dalian exchange declined     Monday for a fifth straight session although soybeans and soyoil  ended higher. 

BMD CPO - KUALA LUMPUR, April 8 (Reuters) - Malaysian palm oil futures edged up to more than one-week highs in thin trade on Monday as investors pinned their hopes on stockpiles having eased further in March, signalling stronger demand for the tropical oil, although the ringgit's recent rise capped gains.

Traders are looking ahead to the Malaysian Palm Oil Board (MPOB) data on March's inventory levels, due on Wednesday, to help gauge supply and demand fundamentals.

A Reuters poll forecast Malaysia's palm oil stocks in March to have edged lower to 2.35 million tonnes as production likely eased 1.2 percent from a month ago.

Stocks stood at 2.44 million tonnes at the end of February, down from a record 2.63 million tonnes at the end of December.

"The market is kind of slow today prior to the MPOB data, but should be supportive because we're expecting stocks to reduce," said a trader with a foreign commodities brokerage in Malaysia.

But a strong ringgit will make margins turn worse for refiners, the trader said. "Most likely refiners will opt to stay on the sidelines, because if they buy CPO the margins will be very negative," the trader said.

By Monday's close, the benchmark June contract  on the Bursa Malaysia Derivatives Exchange had climbed 1.7 percent to 2,400 ringgit ($784) per tonne. Prices earlier in the day touched 2,402 ringgit, the highest since March 29.

Total traded volumes were thin at 26,880 lots of 25 tonnes each, compared to the average 35,000 lots seen so far this year.

The ringgit edged 0.1 percent lower against the dollar on Monday, giving up some gains after hitting its highest in more than 2 months on Friday due to short-covering ahead of upcoming elections.

Investors are also keeping an eye on cargo surveyor export data due on Wednesday that will reveal Malaysia's shipments of palm oil products for the first ten days of April.

Higher demand for refined products in March had helped offset lower crude palm oil shipments caused by a 4.5 percent export duty implemented for the month. The duty was up from zero percent in February.

In other markets, Brent crude rose towards $105 per barrel on Monday as plans to stimulate Japan's economy lifted financial markets, but the oil benchmark remained near an eight-month low on worries over global economic growth and fuel demand.

In vegetable oil markets, U.S. soyoil for May delivery rose 1.0 percent in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange climbed 0.7 percent.

Regional Equities - April 8 (Reuters) - Most Southeast Asian stocks ended weaker on Monday with Singapore and Indonesia falling to their two-week lows led by financials as weak U.S. job data and concerns over Europe dented investors' appetite for risky assets.

Banking stocks dragged the Indonesia index 0.6 percent down, while Singapore ended 0.5 percent weaker, both closing at their two-week lows. Malaysia also edged down 0.04 percent.

"Worries over possible risks from the United States after the weak job data and Europe are the reasons for the fall," said Song Seng Wun, an economist at CIMB, based in Singapore.

DBS Group Holdings Ltd, Singapore's largest lender, and Oversea-Chinese Banking Corporation Ltd fell 1.3 percent and 0.8 percent respectively, while Indonesia's Bank Central Asia Tbk PT dropped 3.2 percent.

In Singapore, Global Logistic Properties Ltd (GLP), which owns warehouses in China and Japan, jumped 3 percent after Japanese stocks soared. 

Bucking the trend, Vietnam gained 0.8 percent led by blue chips and the Philippines edged up 0.1 percent.

The Thailand stock market , which fell 2.6 percent on Friday, was closed for a holiday on Monday.

RTRS - Malaysia March palm stocks likely to ease to 7-mth low

SINGAPORE, April 5 (Reuters) - Malaysia's palm oil stocks likely edged lower in March as production eased for the sixth straight month, a Reuters survey of five plantation companies showed on Friday.

Inventory levels may have dropped 3.8 percent in March to 2.35 million tonnes, marking the third monthly decline, to the lowest level seen since last September. Stocks hit a record 2.63 million tonnes in December.

Production most likely fell 1.2 percent from a month ago to 1.28 million tonnes, as crude palm oil yields remained in a seasonal low cycle, although the decline is significantly smaller than a near one-fifth drop seen in February.

The drops in both output and inventories are expected to support palm oil futures prices , which have been stuck below 2,600 ringgit ($840) a tonne since October 2012 after staying well above that mark for almost two years.

Exports of the tropical oil probably eased 4 percent from a month ago to 1.34 million tonnes in March. Crude palm oil shipments fell after the implementation of an export tax of 4.5 percent in March, up from no tax applied in February.

Despite inching lower, exports were still more than enough to offset production and imports for the month.

Imports of crude palm oil from top producer Indonesia are likely to have grown to 80,000 tonnes from 55,410 tonnes the month before, according to the poll.

FACTORS TO WATCH:

The benchmark third-month contract on the Bursa Malaysia Derivatives Exchange, which lost 0.8 percent in March and 0.5 percent so far in April, may gain support from the sinking stock levels. 

The edible oil could rise to 2,400 to 2,700 ringgit ($770 to $865) per tonne by the end of May, as weaker production speeds a fall in the stockpiles, said leading analyst Dorab Mistry.

Export demand may also pick up in coming months because of attractive prices and plentiful supplies compared to rival edible oils such as soyoil, Hamburg-based oilseeds analysts Oil World said early this week.

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

Malaysia and Indonesia, the world's top palm oil producers, will keep their crude palm oil export tax rates for April at 4.5 and 10.5 percent, respectively, unchanged from March. 

Trader's highlight

DJI - NEW YORK, April 5 (Reuters) - U.S. stocks ended their worst week this year with losses on Friday after a weaker-than-expected jobs report undermined confidence in the economy and first-quarter earnings growth.

The jobs data, which showed employers hired at the slowest pace in nine months, was the latest in a series of disappointing economic reports.

Companies begin to report quarterly earnings next week, which is likely to be another concern for investors in light of recent economic data. Analysts' estimates for earnings growth in the first quarter have fallen since late last year, according to Thomson Reuters data.

"I think earnings season could be less than stellar again. Given market performance to date, we could see some softness in the market because we've generated some healthy returns already," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management, which has about $13 billion in assets.

Stocks had been rallying on the Fed's promise to keep providing stimulus and on mostly improving U.S. economic data. The S&P 500 is up 8.9 percent since the start of the year.

The S&P 500 was down 1 percent for the week. All but three of the S&P 500's 10 industry sectors posted declines.

The government's job report showed 88,000 jobs were added in March, less than half economists' average forecast of 200,000. The unemployment rate dipped to 7.6 percent from 7.7 percent, largely due to people dropping out of the work force.

Among recent weak data, a report Monday showed U.S. factory activity grew at the slowest rate in three months in March.

The Dow Jones industrial average was down 40.86 points, or 0.28 percent, at 14,565.25. The Standard & Poor's 500 Index was down 6.70 points, or 0.43 percent, at 1,553.28. The Nasdaq Composite Index was down 21.12 points, or 0.66 percent, at 3,203.86.

Oils - NEW YORK, April 5 (Reuters) - Brent crude fell to an eight-month low in heavy trading on Friday, going below $104 a barrel and capping off the biggest weekly drop since June as a weak U.S. jobs report fed worries about the economy of the world's largest oil consumer.

The U.S. Labor Department reported that employers added just 88,000 jobs in March, the slowest pace of hiring in nine months. The jobless rate ticked 0.1 point lower to 7.6 percent, largely due to people dropping out of the workforce.

Brent crude oil prices had the biggest weekly loss in 10 months, down more than 5 percent. They have fallen by around $15 a barrel since early February.

"But we had gone up so far, so fast without real improving data. We saw today with the jobs report translating into lower energy prices that it was not a real rally, but more of an easy-money rally."

Brent crude oil trading volumes were 49 percent higher than the 30-day moving average, with more than 950,000 lots traded.

Brent crude futures for May delivery settled at $104.12 a barrel, down $2.22 from Thursday after touching $103.62, the lowest price since August.

U.S. crude settled at $92.70 off an earlier low of $91.91 a barrel. U.S. crude has fallen by almost 5 percent this week, its biggest weekly loss since September. Its discount to Brent, however, narrowed to $11.42, the first time it has traded at less than $12 a barrel in more than nine months.

Hedge funds and other large speculators increased their bets on rising U.S. crude prices by 8,233 futures and options contracts to 246,080 as of April 2, according to a weekly report from the U.S. Commodity Futures Trading Commission.

CBOT Soybean - Soybean futures on the Chicago Board of Trade fell to a 10-month low on technical selling, fears of a potential drop in feed demand due to bird flu in China and seasonal pressure from the South American soy harvest, traders said.

 

·         Chinese authorities slaughtered more than 20,000 birds at  a poultry market in Shanghai as the human death toll from a new    strain of bird flu mounted to six, spreading concern overseas.

 

·         Nearby soybean contracts continued to lose ground to   new-crop months on spreads, a theme that continued after USDA last week reported higher-than-expected U.S. March 1 soybean  stocks.

 

·         Spot soybeans dipped to $13.54-1/2 a bushel, the lowest price on a continuous chart since June 6, before paring losses. Spot soymeal also fell to a 10-month low.

 

·         Soymeal declined along with soybeans, but soyoil closed   higher, gaining against meal on oil/meal spreads and bucking  weakness in crude oil.

·         Early planting will be delayed in the U.S. Midwest due to  cool temperatures and significant rainfall next week that will   also add valuable soil moisture, agricultural meteorologists   said.

·         Trade expects USDA to raise its U.S. 2012/13 soy ending  stocks forecast in its April 10 supply/demand report. The  average analyst estimate of U.S. soybean ending stocks was 136   million bushels, up from USDA's March forecast of 125 million.

·         For the week, soybeans fell 3 percent or 43 cents a    bushel, its second straight weekly decline. Soymeal fell   3.2 percent and soyoil fell 2.5 percent.

BMD CPO - SINGAPORE, April 5 (Reuters) - Malaysian palm oil futures inched lower on Friday, tracking weak soy markets, and posted a second straight weekly loss, with investors cautious ahead of key industry data due next week.

Soybean prices have eased this week after the U.S. Department of Agriculture reported larger-than-expected stockpiles and on worries that bird flu might spread in top importer China and reduce feed demand.

Palm oil tends to track soybean and soybean oil prices closely as the edible oils are close substitutes.

Market participants are awaiting official data on Malaysia's March palm inventory levels -- due on Wednesday -- to gauge the tropical oil's supply and demand fundamentals. Analysts said lower stocks may provide support for prices.

"We believe the overall data should be short-term positive to crude palm oil prices," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients on Friday.

The bank is revising its March inventory forecast slightly down to 2.26 million tonnes from 2.31 million tonnes earlier after revising its production and exports estimates, Lim said.

A Reuters survey of five plantation companies showed Malaysia's palm oil stocks likely edged to a 7-month low in March at 2.35 million tonnes.

By the market close, the benchmark June contract n the Bursa Malaysia Derivatives Exchange had eased 1.5 percent to 2,356 ringgit ($771) per tonne. For the week, prices suffered a 0.9 percent loss.

Traders are also looking out for Malaysia's export data on Wednesday for the first 10 days of April, after cargo surveyors showed better exports in March than February boosted by higher shipments of refined products.

In other markets, Brent crude oil steadied close to five-month lows around $106 per barrel on Friday as bleak U.S. data and bulging inventories dimmed the outlook for fuel demand.

In vegetable oil markets, U.S. soyoil for May delivery  lost 0.1 percent in late Asian trade. The Dalian Commodities Exchange will be closed until Monday for a public holiday in China.

Regional Equities - April 5 (Reuters) - Thai stocks fell 2.6 percent on Friday as political concerns triggered a broad-based selling ahead of a three-day weekend while other Southeast Asian shares bounced off their day's lows as an ultra-loose monetary conditon in Japan bolstered outlook.

The Bank of Japan's recent announcement of an intense monetary easing was seen as bullish for risk assets. HSBC said Thailand, Malaysia, and Indonesia had been markets in emerging Asia that traditionally had the closest financial links with Japan.

"This is not just a Japan story: liquidity will pour into regional financial markets already drowning in the stuff," HSBC said in a report dated April 4.

"Thailand, Malaysia, and Indonesia are usually big recipients, but Vietnam, the Philippines, and even India, could see a lot more inflows, too," it said.

Leading gains in the region, the Ho Chi Minh Stock Exchange's VN Index climbed 1.1 percent as gains in heavyweight stocks helped to prop up the market after two days of falls. It was up 2.4 percent on the week, the best performer.

Hopes for disbursements from new funds, particularly those from Japan following intense monetary easing by Bank of Japan, also helped the market, said Lai Duc Long, a broker at Phu Hung Securities.

In Bangkok, the main SET index breached a key 1,500 level to close at 1,489.53. Trading volume fell to 67 percent of a full day average over the past 30 sessions as Thai market will be shut on Monday for Chakri day, reopening on Tuesday.

"Investors cut their risk exposures in response to more political noises these days. There are going to be many holidays in April and sentiment is generally weak," said CIMB senior analyst Teerawut Kanniphakul.

The SET fell 4.6 percent on the week, the worst performing market in Southeast Asia. It regained an early loss to rise on Thursday after an anti-graft body said it had found no irregularities in the disclosure of assets by Prime Minister Yingluck Shinawatra.