November soybeans were up 12 3/4 cents late in the overnight session. Palm oil futures in Malaysia were down 0.9% to a one year low. China's soybean futures markets are closed this week. While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally stronger this morning. Early indications are that US equity markets will open higher. The US Dollar is weaker against most of the major currencies. There are reports that Franco-Belgian bank Dexia will be broken up, with toxic assets put into a bad bank that will have government support from both nations. A major credit ratings agency downgraded Italy's sovereign debt by three levels with a negative outlook. A private survey of German Service Industries during September came in at 49.7, lower than projections. A private survey of UK service industries during September was 52.9, much higher than expected. Euro zone GDP during the second quarter was up 1.6% year-on-year, slightly lower than forecasts. UK GDP during the second quarter was up 0.6% year-on-year, lower than expectations. Euro zone retail sales during August were down 0.3%, in-line with forecasts. Major US economic numbers to be released this morning include a private survey of US private employment at 7:15 AM, a private survey of US non-manufacturing industries at 9:00 AM, and a weekly private survey of mortgage applications released before the opening. Reduced economic concerns in European this morning is helping to fuel a recovery rally in many commodity markets, including soybeans. Ideas that the market is oversold after the recent price collapse and talk that US soybeans are now more competitive than South America lent support. However, the short-term fundamentals in the market are still leaning to the bear camp. The weather outlook in Brazil and Argentina is improving, with rains in the forecast for dry areas. US weather is nearly ideal for harvest, and there is talk of better than expected yield, which has traders leaning toward a significant improvement for next week's USDA production update. One major firm pegged yield at 42.8 bu/acre yesterday, which would be an increas of 1 bu/acre from last month's forecast. A one-bushel-per-acre adjustment higher in yield would add 74 million bushels to the supply outlook. November soybeans closed sharply lower on the session yesterday, which pushed the market down as much as $3.13 off of the August 31st peak. Index and hedge fund selling has been noted in recent weeks in the COT reports, and traders remain nervous over the selling pressures seen in a wide range of commodity markets. The market saw further selling pressure yesterday, as a weaker US stock market and weakness in other commodity markets plus a jump in the US dollar helped to pressure. The selling drove the market to the lowest level since November 30th. The Canadian production update was a supportive factor, as canola production was pegged at 12.9 million tonnes, up 1.2% from last year but down from trade expectations near 13.8 million tonnes. Soybean oil usage is being slowed by the stiff discount of palm oil to soyoil on the world market and from a larger supply (and stiff discount) of sunoil from the Black Sea region. Traders see very active harvest progress for the coming week in the US. As of Sunday the crop was 19% harvested, compared with 34% last year.