March soybeans were down 1 cent late in the overnight session. Malaysia palm oil futures were down 0.6% ahead of a key export report. China soybean futures were up for the 4th session in a row, up 0.4% overnight. Outside market forces look slightly negative with a strong US dollar and weaker equity markets. Talk of the possibility of more cancelled sales of US soybeans to China, talk of a record Brazilian crop, continued good weather in South America and ideas that the soybean complex is overbought has helped pressure the market in recent days. There Brazilian harvest is expected to advance in the weeks just ahead, and there have been reports that early yields are coming in better than expected. Traders believe the crop is nearly 5% harvested. China imported 5.15 million tonnes in January, up 26% from last year and up from official estimates from last month of 4.8 million tonnes. The imports in December totaled 5.43 million tonnes. News from the weekly export sales report that China had cancelled purchases of near 262,000 tonnes of old crop US soybeans plus a weakening cash tone in the US plus a strong US dollar are seen as short-term negative forces. March soybeans closed 17 cents lower on the session Friday and 17 1/2 cents lower for the week. The lower close on the week after posting contract highs is considered a negative technical development by some traders. Nearly ideal weather for South America and weaker cash basis levels based on ideas that Brazil is getting more competitive with US soybeans helped to spark some long liquidation selling pressures early on Friday. A strong advance in corn helped to limit the downside trade. News that Egypt'ss shift in power will be ongoing helped support a move from lower to higher in wheat on Friday, and this helped lift soybeans off of their early lows. For this morning's monthly NOPA crush report, traders are expecting the January soybean crush to come in slightly above 144 million bushels, down from 145.537 million bushels in December. Traders will also be reviewing baseline projections from the USDA early this week. These figures will give traders an indication of what the USDA was thinking in November about the supply/demand outlook for new crop soybeans. The USDA Outlook Forum later this month will give traders a more up-to-date look at the planting expectations as well as demand factors for the 2011/12 season. The Commitments of Traders reports as of February 8th for soybeans showed non-commercial traders were net long 188,608 contracts, an increase of 3,864 for the week. The buying trend was offset by a selling trend for commodity index traders. They reduced their net long position by 4,199 contracts for the week to 181,261. For meal, non-commercial traders were net long 47,034 contracts, a decrease of 2,199 contracts for the week. Non-commercial and nonreportable traders combined held a net long position of 73,038 contracts, down 3,331 contracts. For oil, the combined spec and fund net long position has hit a new record high level at 108,505 contracts. The non-commercial net long position also reached a new record level at 88,861 contracts after showing an increase of a whopping 10,016 contracts for the week. Commodity index traders held a net long position of 95,908 contracts, up 1,205 for the week.