March soybeans were up 6 cents late in the overnight session. Palm oil futures in Malaysia were up 1.2% overnight, and China soybean futures were up 1.5%. There were 251 meal deliveries overnight and 1,424 for oil. There were 220 deliveries against the January soybeans this morning after no deliveries so far in the delivery period. Outside market forces look mixed as a weak US dollar is offset by weak metal markets. The market pushed to a new highs for the move overnight with some follow-through technical buying from yesterday, even though outside forces were mixed with a weaker tone for energy and metal markets. Argentina weather looks hot and dry until early next week when a significant rain event could ease crop stress. On top of the USDA report news yesterday, the USDA also announced a sale of 40,000 tonnes of US soybean oil to China for the 2010/11 season. Traders believe China will be needing to restock reserves this year, and that country continues to try to fight inflationary tendencies. However, in the short-term there is a sense that China crushers will rely on state reserve sales, which could keep new import demand slow. Argentine farmers have indicated that they will halt the sale of all grains and oilseeds for one week starting Monday to protest the government's export policies in the wheat and corn markets. The USDA pegged Argentina production at 50.50 million tonnes vs. 52 million tonnes last month, but many traders see Argentina's production potential already below this level. Argentina's Agricultural Secretary indicated that the crop would be below 50 million tonnes. Yesterday the market closed about 10 cents off of the new highs for old crop but still close to 60 cents higher on the sessiony. Old crop gained more than 20 cents on new crop. Bullish USDA report news sparked aggressive buying from the trade and from fund traders. There was some talk that funds had been hoping to buy the market into a late January break but that the report forced them to get active now. The market traded up the 70 cent limit at one point yesterday, and nearby futures to the highest level since September of 2008. The Supply/Demand report showed US ending stocks were pegged at 140 million bushels, down 25 million from last month. The stocks/usage ratio now at just 4.2%, which is the lowest since the 1965/66 season. World ending stocks were pegged at 58.28 million tonnes compared with 60.12 million tonnes last month. US crop production was down 46 million from the previous forecast, and planted area was revised lower by 300,000 acres. December 1st stocks were pegged at 2.277 billion bushels, down 62 million bushels from last year. Traders had expected a slight rise. Traders will monitor the weekly export sales news and Argentina weather reports.