November soybeans were down 6 1/2 cents late in the overnight session. Futures in China were up 0.5% overnight, closing higher for the third day in a row. Palm oil futures in Malaysia closed down 0.7%. Early indications are that US equity markets will open modestly lower. The US Dollar is stronger against most of the major currencies, although posting a loss versus the Yen. The Chinese Trade surplus during September was 14.51 billion Dollars, a smaller surplus than projections. German CPI during September was up 2.6% year-on-year, in line with market expectations. The UK Trade deficit during August was 7.77 billion Pounds, a smaller deficit than forecasts. Major US economic numbers to be released this morning include Weekly Jobless Claims and the August International Trade Balance. Weaker energy and metal markets may leave a negative tilt to outside market forces today. With China a more active buyer and US soybeans competitive on the world market, futures may need to push high enough to entice increased flow of US soybeans out of producer's hands. Harvest is active, but producer selling has remained light, and cash basis is firming. Private buyers in China have been active in the past week, and traders believe that about 1 million tonnes have been bought for restocking reserves and that there could be another 1 million purchased for this purpose in the weeks just ahead. The Chinese market has not rallied as fast as the US market, so private buying might slowed due to weaker crush margins, but restocking may still occur. China imported 4.13 million tonnes in September, which was down 11% from last year, and this pushed the 9-month total for the year to 37.71 million tonnes, down 6% from last year's pace. South Korea is in the market for 28,500 tonnes of non-GM soybeans. November soybeans managed to close slightly higher on the session yesterday and managed to take out Tuesday's highs by a slight margin. The market consolidated Tuesday's strong gains, and traders see the higher close as a positive technical development. Lower than expected yield and smaller production were seen as positive factors from the USDA reports, but the reaction could be tempered by news that exports were revised lower by 40 million bushels. The USDA pegged soybean production at 3.06 billion bushels from 3.085 billion last month and down 35 million from trade expectations. Average yield came in at just 41.5 bushels per acre from 41.8 last month and trade expectations near 42. Ending stocks for the 2011/12 season came in at 160 million bushels as compared with trade expectations at near 185 million and 165 million as last month's estimate. World ending stocks for the 2011/12 season came in at 63 million tonnes as compared with 62.55 million last month. The increase came from an adjustment higher in the 2010/11 ending stocks to a record high 69.26 million tonnes. After rumors were flying Tuesday over China restocking reserves, there were reports yesterday that China may have bought 120,000 tonnes of Brazil soyoil and 700,000-800,000 tonnes of US soybeans. Soybean harvest in the US through Sunday jumped 32% in one week to 51% complete, which was thought to be the biggest 1-week harvest total on record. The previous record was 28% in one week in 1997. In the weekly broiler report, producers set 7.25% fewer eggs into incubators compared to the same week last year. This could keep meal demand on the decline. Weekly export sales and the monthly NOPA crush data will be released Friday morning.