November soybeans were down 11 cents late in the overnight session. China futures are closed this week. Palm oil futures in Malaysia were down as much as 2.7% to a one year low. Equity markets in Asia and Europe were weaker during overnight trading. Early indications are that US equity markets will open with slight losses. The US Dollar was stronger against most of the major currencies. Greece passed a new austerity budget this morning that was unable to reach their deficit targets. The official Chinese PMI index during September was 51.2, slightly below expectations but well above the critical 50 level. The Bank of Japan's Tankan survey of Japanese economic conditions during the third quarter of 2011 was plus 2, in line with expectations and back into positive territory. A private survey of German manufacturing during September was 50.3, higher than market expectations. A private survey of UK manufacturing during September was 51.1, higher than market forecasts. Major US economic numbers to be released this morning include August Construction Spending as well as a private survey of US manufacturing at 9:00 AM. Strength in metals and a late bounce in the energy markets to just slightly lower on the day helped ease some of the bearish outside market influence late in the overnight session. While the soybean stocks were nearly 10 million bushels below trade expectations for the stocks report on Friday, the market is seeing the massive long liquidation break continue as poor numbers for corn, a big harvest week ahead and fears that better weather late in the season may have boosted soybean yields has kept the bears in control. The market is now down more than $3 off of the August 31st peak. The stocks report Friday was not enough to slow the liquidation pace. November soybeans closed down 51 cents Friday and down 79 cents for the week. December meal was down 21.50 for the week, and December oil lost 243 points for the week. Weakness in outside market forces plus bearish stocks numbers for corn and wheat sparked the negative reaction to an ostesibly bullish stocks report from the USDA. Talk of the oversold condition of the market helped spark a minor bounce off of the lows into the mid-session Friday, but the limit-down move in corn was enough to keep sellers active into the close. The USDA report was considered slightly supportive for the soybean market, but bearish news from other grains sparked the selling. The USDA pegged September 1st stocks at 214.7 million bushels, which was about 10 million bushels below trade expectations. This will constitute the beginning stocks for the 2011/12 season and will tighten the outlook somewhat, depending on the October 12th production update. Talk of better than expected early yield results in the Midwest plus dry weather in the forecast for this week had traders talking about increased harvest selling pressures ahead. Improving weather for soils in South America into their planting season added to the bearish tone. Traders will be watching field reports on yield this week, and there is growing concern for an adjustment higher in yield for the production report next week. The Commitments of Traders reports as of September 27th for soybeans showed non-commercial traders were net long 75,090 contracts, a decrease of 41,648 in just one week. The aggressive long liquidation selling pace is seen as a short term negative force. Commodity index traders held a net long position of 148,823 contracts, down 10,454 for the week. For meal, non-commercial traders were net long 3,752 contracts, a decrease of 21,785. Non-commercial and nonreportable traders combined held a net long position of 7,103 contracts, down as whopping 28,554 contracts for the week. For oil, non-commercial traders were net long 1,534 contracts, a decrease of 28,164. The aggressive selling from fund traders is seen as a bearish force. Commodity index traders held a net long position of 73,476 contracts, down 2,410.