March soybeans were trading down 11 3/4 cents late in the overnight session. China futures were closed all of last week and bounced just 0.3% this morning which was less of a rally than expected as traders were looking for China to play catch-up from last week's solid gain for the US market. Malaysia palm oil futures closed down 1.7% and pushed to a 5-week low. Asian equity markets were weaker this morning, as traders and investors in that region were apparently disappointed with the lack of a cut in the Chinese reserve rate requirement. European equity markets were also weaker in the face of a lack of definitive forward movement on the Greek debt talks and perhaps because of a lack of confidence in the coming EU summit. Somewhat surprisingly, European markets didn't see much benefit from news that Italian auction yields fell from prior auction levels this morning perhaps because of the lingering uncertainty over the EU summit. Euro zone consumer confidence levels improved slightly overnight, but those figures remained in negative territory. The markets will see a US Chicago Fed Midwest Manufacturing report, Personal Income, Personal Spending and a Texas manufacturing report in the morning trade today, but some in the trade might already be looking ahead to the week ending US monthly non farm payroll report for most of their macro economic guidance. A strong US dollar and weakness in energy and metal markets helped to pressure grains overnight. The surge up in the US dollar overnight plus a muted response for China soybean futures this morning after being closed for a week helped to spark increased selling pressures. Traders see weather as mostly favorable for the South American soybean crops in the next few weeks with several rain systems. Parts of Southern Brazil could remain in a stressful condition until later this week but Argentina and other parts of Brazil could see improving crop conditions ahead. A green light for commodity investing from world money managers for grains and commodity markets helped to support soybeans last week due to Fed Reserve news but traders are now nervous that demand will slow on the rally and that increased producer selling could also pressure the market ahead. Soybean export sales are still down 30% from last year and while South America production may be down about 8 million tonnes from the last USDA estimate, traders believe there will still be plenty of soybeans for an aggressive export campaign from South America. March soybeans closed 3 3/4 cents lower on the session Friday but held inside of Thursday's range and managed to close 32 cents higher on the week. A turn down in the US equity market and ideas that the market is a bit overbought after the recent run-up helped to pressure the market. Argentina is expected to receive another 1/2 to 1 1/2 inches of rain early this week but southern Brazil growing areas may have to wait until late in the week and into the weekend before seeing new coverage. Rains last week helped to improve crop conditions but more is likely needed. Talk of drier weather for northern Brazil (harvest areas) for late this week was seen as a negative force. The move in the US dollar to the lowest level since early December helped to provide underlying support for soybeans and other agricultural markets. The Commitments of Traders reports as of January 24th for Soybeans showed Non-Commercial traders were net long 61,661 contracts, an increase of 12,950 contracts for the week and the buying trend is seen as a short-term positive force. Commodity Index traders held a net long position of 169,265 contracts, up 2,053 and the buying trend from index funds for all of the grains was seen as a positive development. For Soybean Meal, Non-Commercial traders were net short 11,047 contracts, down 8,247 contracts for the week and the short-covering trend is seen as a positive force. Non-Commercial and Nonreportable combined traders held a net short position of 5,871 contracts, down 10,611. For Soybean Oil, Non-Commercial traders were net short 7,274 contracts, down 400 for the week. Commodity Index traders held a net long position of 106,035 contracts, up 4,442 for the week and the buying trend is positive.