March soybeans were trading 1 1/4 cents lower late in the overnight session. China futures are closed this week but Malaysia palm oil futures closed up 0.1%. European equity markets were generally weaker this morning, while many Asian markets remain closed due to holiday. The markets saw weak UK GDP readings overnight and that might have contributed to fresh concerns of global slowing off residual problems in the Euro zone. However, the European markets were still concerned with the lack of forward progress on the Greek debt negotiations but they weren't overly interested in the fact that German business sentiment rose for the 3rd straight month! Today the markets are looking ahead to the end of a two day US FOMC meeting, with the Fed taking the added step of releasing individual Fed member interest rate forecasts today. The US trade will also see a Pending Home sales report and a mass layoffs release. Expectations call for a slight contraction in pending home sales figures. There will also be an auction of $35 billion in 5 Year US notes at mid session today. The US Dollar has started out stronger against the euro, although the Euro showed some bounce in the wake of the positive German business sentiment figures. In conclusion, the Pending home sales report might be the critical early morning event today, while the FOMC statement at 11:30 might dominate the mid day trade. However, the tone into the close today is likely to be dominated by the Fed's new interest rate forecast effort. The rally to a new high for the move yesterday was especially impressive given the good rain events of the recent past in South America and the forecast for rainy weather to resume by late next week. In addition, China buyers are on holiday and some analysts are increasing their Brazil production forecast. Without stressful conditions for crops in South America, demand for US soybeans will need to be impressive to keep speculators interested in holding longs. However, outside market forces also look sluggish. Rumors that Argentina was considering an export ban were quickly denied but still managed to help support the market. Increased producer selling in the US was noted on the sharp rally of the past few sessions as producers appear to be willing sellers in soybeans on rallies but holding tight to corn. March soybeans closed slightly higher on the session yesterday as the market shook off early sharp selling pressures to turn higher with the help of strength in corn and wheat. Rumors that Russia would tax exports supported wheat and rumors that Argentina may ban exports supported the corn rally and soybeans followed the other grains higher. A negative tilt to outside markets plus news that parts of Argentina received heavy rains in the last day helped to drive the market lower early. Traders indicated that drier parts of Santa Fe and Cordoba Argentina received 1 1/2 to 2 1/2 inches of rain in the last day and that this rain may go a long way in helping to boost crop conditions. In addition, the 6-10 day forecast was seen as wetter and this added to the negative tone. Open interest was down 3,971 contracts on the strong rally Monday.