March soybeans were down 6 cents late in the overnight session. Palm oil futures in Malaysia were down 0.4% overnight and China soybean futures were unchanged. There were 154 meal deliveries overnight and 1,690 for oil. There were also 170 January soybean deliveries, bringing the two-day total to 390. News that China has tightened reserve requirements at banks for the 4th time in the past two months was seen as a potential negative force for commodity markets. The market saw some bounce overnight but drifted below yesterday's lows late in the overnight session. Talk of the overbought condition and uncertainties about China demand helped to pressure. Traders will monitor the grain protests in Argentina closely, and with high palm oil prices, there will also be a close watch on any flooding or rain issues in Indonesia and Malaysia. Some areas of Argentina are expected to receive some rains on the weekend, and there is still a significant rain event in the forecast for early next week, which is expected to ease the stress on the crop. Given the moisture deficits in central and southern Argentina, it will be important to see more follow-through rains after next week to ease the deficits or topsoils could dry out quickly. In China, edible oil prices were under some pressure overnight, with talk that the government will auction about 500,000 tonnes of edible oil onto the market ahead of the Lunar New Year which starts February 2nd. China officials are in a tough position trying to combat inflation. There is talk that reserves are low, but buying the soybeans to replace the reserves on the world market could boost prices even higher. March soybeans fell 10 cents in the last hour of trade yesterday but managed to hold onto a small gain on the session. Futures were sharply higher early with March up as much as 17 1/2 cents into the mid-session before drifting lower for much of the day. Profit-taking emerged to limit the upside. Ideas that the rally may attract increased selling from producers was also seen as a factor sparking some of the selling. The Buenos Aires Grains Exchange indicated that the soybean crop in Argentina would come in near 47 million tonnes. This estimate compares with the USDA estimate this week at 50.5 million tonnes. Strong gains in the corn market and uncertainty about production and exports from Argentina have lent support to the market. Soybean weekly export sales came in at 675,000 metric tonnes, which was a little higher than expected. Cumulative soybean sales stand at 83.0% of the USDA forecast for 2010/11 marketing year versus a 5 year average of 69.0%. Meal sales were well below trade expectations at 26,200 metric tonnes as compared with 93,000 metric tonnes needed each week to reach the USDA forecast. Soybean oil sales came in at 7,500 metric tonnes, which pushed cumulative sales to 79.3% of the USDA forecast for 2010/11 marketing year versus a 5 year average of 34.5%. Keep in mind, China's purchase of 40,000 tonnes from this week will show up in next week's report. Ideas that China may limit imports pver the short term due to the availability of thier reserve soybeans may have limited the upside.