March soybeans were trading up 2 cents late in the overnight session. China futures closed up 0.2% overnight and palm oil futures in Malaysia were down 0.2%. Asian equity markets were mixed overnight, with the resurgent Chinese inflation readings derailing hopes that the PBOC might shift away from tightening policies. European equity markets were also mixed with some gains seen off residual optimism toward the Greek situation, and that comes despite news that the parties were hung up on at least one issue (pension cuts). Early US stock market action was mixed to lower because of uncertainty off the EU situation. The overnight economic news flow showed a hotter than expected Chinese January inflation reading, with most of the heat coming from soaring food prices. In other economic developments, Japan showed some weakness in December core machinery orders, while UK December manufacturing output increased by 1%, which was slightly above estimates. The US economic report schedule today brings initial and ongoing claims, which are expected to show minor gains. Also out today from the US is a wholesale trade reading, which is also generally expected to rise. In the end, US data might have an impact, but the real focus of the trade is likely to remain on Greece. The results of the USDA supply/demand report should help set the tone today. US ending stocks are expected to come down by just a few million bushels from 275 million posted in the January report. 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. World ending stocks are expected near 61.4 million tonnes from 63.43 million last month. News of too much inflation in China is seen as a negative for many agricultural commodity markets. March soybeans closed slightly lower on the session yesterday after a 22 cent two-sided and volatile trading session. A weaker dollar and optimism for a Greek bailout package helped to support. However, a turn down in the US stock market, a rally in the US dollar and talk that better weather seems to be stabilizing crop estimates for South America helped to spark long liquidation selling pressures and a move lower on the day into the mid-session. Good rains in Argentina areas this week has many traders talking about improving crop conditions ahead. Southern Brazil looks to turn drier for much of next week and this is a slight concern but other areas seem to be improving. March oil pushed higher and to the highest level since January 5th while March meal pushed sharply lower into the mid-session and to a 4-session low. For the weekly export sales report, also released before the opening, traders expect sales for soybeans near 625,000 tonnes from 368,400 last week. Meal is expected near 125,000 and oil at 7,500 tonnes. The China National Grain and Oils Information Centre suggests that the import demand could be sluggish near-term as stocks at ports reached 7 million tonnes, up 200,000 from mid-January. They indicated that January imports will fall to 4.3 million tonnes from 5.42 million in December. However, the group went on to indicate that 1st quarter imports should reach 12.3 million tonnes, up 1 million from last year. Meal demand in the US could remain sluggish as the weekly broiler report showed that eggs set for the week were down 6% and chick placements were down 5% from last year. The Brazil government (Conab) reduced their production estimate to 69.23 million tonnes from 71.75 million in January. The USDA was at 74.00 million in January.