March soybeans were trading 11 1/4 cents higher late in the overnight session. China futures closed up 0.5% overnight and palm oil futures in Malaysia were up 1.2% to a new 3-week high. Asian equity markets were higher overnight in the face of fresh Euro zone hopes but the Shanghai and New Zealand markets bucked the positive trend. European equity markets were also positive, with a slight decline in Italian yields adding into the modestly upbeat environment. Early US stock market action was also positive, with the markets potentially catching an added technical bid because of the sharp down action seen at the end of last week. In the US trade today the markets won't see any key scheduled US data flows but the US Administration is expected to release its 2013 Budget and that could cause a noted reaction in an election year. From the overnight news wire, the Japanese released a GDP report that generally showed an ongoing contraction but there were some signs of life in Japanese domestic demand within that report. The bullish tone to outside market forces plus some threatening heat and dryness for parts of southern Brail into later this week has helped to support solid gains early today. Active buying from China for US and South American soybeans last week and ideas that the China trade delegation will sign purchase agreements for millions of tonnes of soybeans from the US this week has added to the positive tone. The China National Grains and Oils Information center indicated that China will auction 300,000 tonnes of reserve soybeans on Tuesday. This is seen as a slightly negative development and could slow import demand short-term. March soybeans closed 1 1/4 cents higher on the session Friday and just 3 1/2 cents lower for the week. New crop November soybeans closed higher on the week. A negative tone to outside market forces plus follow-through selling from Thursday's weak technical action helped to drive the market moderately lower on the session early. A surge higher in the US dollar and weakness in energy and metal markets helped to pressure soybeans and other commodity markets. Talk of increased risk of Greek default helped to pressure the market as well. Private exporters reported a sale of 120,000 tonnes of US soybeans to China which helped to provide some underlying support. Talk that parts of southern Brazil are still warm and dry helped to support the market late in the day to close higher on the session. Traders are concerned that this region will be dry this week with increasing temperatures. The Commitments of Traders report as of February 7th showed Non-Commercial traders were net long 80,747 soybean contracts, an increase of 24,195 for the week and the strong buying trend from fund traders is seen as a short-term positive force. Commodity Index traders held a net long position of 168,951 contracts, down 696. For Soybean Meal, Non-Commercial traders were net short 288 contracts, a decrease of 8,605 contracts for the week and the active short-covering trend is seen as positive. Non-Commercial and Nonreportable combined traders held a net long position of 6,243 contracts. These traders shifted from net short to a net long which is seen as a positive. For Soybean Oil, Non-Commercial traders were net long 2,420 contracts, an increase of 13,396 contracts and the aggressive buying trend is seen as positive.