November soybeans were down 1/2 of a cent late in the overnight session. Palm oil futures pushed to a 1-month high ahead of the USDA reports this morning, closing up 0.7% on the session in Malaysia. There were 606 deliveries against the September CBOT soybean contract this morning, pushing the month-to-date total to 3,303. Oil deliveries totaled 798 contracts. There were no meal deliveries this morning. Equity markets in Asia and Europe were weaker during overnight trading, and US equity markets look to open with substantial losses. The US Dollar is moderately stronger against most of the major currencies this morning, although it is down against the Yen. G7 Finance Ministers in Marseille over the weekend agreed to coordinate their response to the global economic slowdown, but the trade continues to fear a lack of coordination from the G7 and ECB. The Chinese Trade surplus during August was $17.76 billion, lower than market forecasts. There are no major US economic numbers to be released this morning. The results of the USDA crop production and supply/demand report will set the tone for the market today and maybe for much of the week. Traders are looking for US soybean production to come in around 3.025 billion bushels, down from 3.056 billion last month and 3.329 billion last year. Yield is expected to be around 41 bushels per acre, down from 41.4 bu/acre last month. New crop ending stocks are expected to be around 152 million bushels, down from 155 million last month and 230 million for 2010/11, the season which just ended. November soybeans closed 8 1/2 cents higher on the session Friday but down 19 cents for the hoiday-shortened week. More talk of the potential for frost in the northern Corn Belt this week helped to support the market, but this morning traders see potential frost just in the far northern sections of the plains and Midwest, while others see potential damage to soybeans for northern Iowa, southern Wisconsin and to northern Ohio later this week. Weakness in outside market forces on growing concerns for European debt issues helped to limit the buying support on Friday and may help pressure the market today, depending on the results of the USDA reports. Weekly export sales for soybeans, in the report released Friday before the open, came in at 444,900 metric tonnes, which was near trade expectations. Cumulative soybean sales stand at 37.6% of the USDA forecast for 2011/12 (current) marketing year versus a 5 year average of 32.2%. Sales of 455,000 metric tonnes are needed each week to reach the USDA forecast. However, private exporters reported the cancellation of 240,000 tonnes of US soybeans to China. Meal sales came with net cancellations of 24,500 metric tonnes for old crop and net sales of 172,500 for new crop, for a total of 148,000 which was near the high end of expectations. Net oil sales came in at 5,900 tonnes, all for new crop. The Commitments of Traders reports as of September 6th showed non-commercial traders were net long 180,210 contracts, a decrease of 3,759 contracts for the week. Non-commercial and nonreportable traders combined held a net long position of 173,961 contracts, down 2,779. The selling trend is seen as a short-term negative force. For meal, non-commercial traders were net long 57,564 contracts, an increase of 9,824 contracts for the week. Non-commercial and nonreportable traders combined held a net long position of 75,535 contracts, up 7,957. The aggressive buying trend by speculators is seen as a short term positive force. For oil, non-commercial traders were net long 43,885 contracts, an increase of 948. Non-commercial and nonreportable traders combined held a net long position of 54,140 contracts, up 1,817. China confirmed imports of soybeans in August at 4.51 million tonnes, down 5% from last year and down 16% from July. For the year, imports reached 33.58 million tonnes, down 5.5% from the previous year.