May soybeans were up 5 cents late in the overnight session. China futures were 0.5% higher overnight. Malaysia palm oil futures were up 1.7% overnight led by higher energy markets and tightening supply. Outside market forces are considered slightly supportive with a weaker US dollar and a firm tone to metals and energy markets. There were no deliveries against the March soybeans overnight with meal deliveries at 1,418 contracts and oil at 2,170. Harvest delays in Brazil look to persist for much of next week and Argentina port workers have slowed work at two terminals and traders see these as reasons to suspect somewhat better demand for US soybeans and products. In addition, Argentina is apparently cracking down on export tax issues with major grain exporters and this could slow movement from the region as well. Rumors of China buying several cargoes of US soybeans has helped support the market as well. News that China was a major buyer of old crop soybeans in the weekly export sales report added to the positive tone. May soybeans closed sharply higher on the session yesterday and to the highest close since February 17th. A weaker US dollar and a surge higher in US equity markets were seen as positive. In addition, there is still talk that China plans to reduce import tariffs on a range of products and traders believe this might include vegetable oils. The jump in crude oil overnight supported the palm oil market. Weekly export sales for soybeans came in at 361,700 metric tonnes for the current marketing year and 283,600 for the next marketing year for a total of 645,300 which was well above trade expectations. Cumulative soybean sales stand at 91.1% of the USDA forecast for the 10/11 (current) marketing year versus a 5 year average of 82.0% sold for this time of the year. As result, old crop sales of just 143,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 149,600 tonnes. Oil sales came in at 16,000 metric tonnes all old crop which pushed cumulative sales to 87.9% of the USDA forecast for 2010/2011 (current) marketing year versus a 5 year average of 48.1%. Sales of 5,000 metric tonnes are needed each week to reach the USDA forecast. Argentina dock workers have blocked two major grain export terminals in Rosario due to pay demands. Heavy deliveries for meal were seen as a limiting factor early but weakness in energy markets helped spark meal/oil spreading to support solid gains in meal and a strong close while May soybean oil closed slightly lower on the day. Oil saw solid gains overnight.