March soybeans were trading up 7 cents late in the overnight session. China futures closed down 0.1% overnight and palm oil futures in Malaysia were up 2.3% after being closed since Friday. Asian equity markets were definitively higher overnight, with the Nikkei managing to reach a fresh 3 month high. European equity markets were also higher off optimism toward a Greek deal, but noted strength in financial sector shares gave that action some added credence. However, US stocks were waffling around both sides of unchanged early today and that could suggest the US markets will need further signs of progress from Greece to rise even further. The US economic report slate is almost empty today with a weekly mortgage application survey due out early and a mid day auction of $24 billion of 10 Year notes the only scheduled events. The trade will also see a Fed speech from the San Francisco Fed's Williams at mid morning and given a lack of scheduled news, that speech might have a more significant impact on the markets. In conclusion, follow through gains in international equity markets, higher energy price action and strength in the Euro early today has ushered in a positive tone for grain markets this morning. Positioning ahead of the USDA supply/demand reports may influence markets today. Traders see little changes to the US demand outlook but significant reductions for the South America production. Some traders see the lower southern hemisphere production as a supportive force for new crop November futures. US soybean oil yield may be revised lower. US ending stocks are expected to come down by just a few million bushels from 275 million posted in the January report. Some traders see the USDA Outlook Forum new crop ending stocks down near or even below 200 million bushels. Traders see Brazil production near 71.3 million tonnes from 74 million in the last USDA update. Argentina production is expected near 48 million tonnes, down from 50.5 million in January. A soybean producer group in Paraguay believes that drought has caused production estimates to be revised down to 4.6 million tonnes for this year's crop from 8.4 million tonnes last year. The USDA projection last month was 7.6 million tonnes. March soybeans saw some late selling pressure to push the market to close slightly lower on the session yesterday. Weakness in outside market forces plus talk of improving crop conditions in South America helped to pressure the market early. However, a shift from negative to positive for outside market forces plus continued talk of lower production estimates for South America helped support. US basis bids along the river were a little lower yesterday which added to the negative tone. Private exporters reported to the USDA a sale of 20,000 tonnes of US soybean oil to Morocco. News that dock workers in Brazil are considering a 24-hour work stoppage today helped to provide some underlying support. There is still some concerns for possible rapeseed damage in Europe due to cold weather. Talk of potential export business in meal to Europe continues to provide some underlying support for meal.