May soybeans were trading up 11 1/2 cents late in the overnight session. China futures closed up 0.4% overnight and palm oil futures in Malaysia closed up 1.7% on the session. Asian equity markets were generally higher overnight, mainly in reaction to the late rebound in yesterday's US equity markets. European equity markets have been able to maintain that positive tone this morning as increased market optimism that Greece will avoid a disorderly sovereign debt default is helping to underpin prices at these levels. While a strong German PPI number earlier today helped to reinforce early gains, the resignation of the German President has injected some uncertainty into the markets. Early US stock market action has been close to unchanged levels, with prices holding just below the recent highs. In looking forward to US trading today, the market will see a reading on US CPI as well as a private survey of Leading Indications later on in the session. Outside market forces look slightly positive for today and traders remain concerned over the potential losses to the South America crop. Southern Brazil will receive some light rains early next week but more soaking rains are not due until Thursday or Friday. This has raised concerns for further losses in Brazil. Argentina looks to receive hefty rain totals into next week but there is still some concerns that the damage is done. In the first official crop estimate for Argentina, the Farm Minister pegged the crop at just 43.5 to 45 million tonnes which is down sharply from the USDA estimate just last week at 48 million tonnes and also down from the Buenos Aires Grains Exchange estimate of 46.2 million tonnes. May soybeans closed slightly lower on the session yesterday after choppy and two-sided trade. Ideas that the market has already priced-in the weather developments in southern Brazil and the recent strong buying trend from China helped spark the choppy trade. The market saw outside market forces shift from bearish to bullish on the day yesterday due to better than expected economic news in the US. Ideas that the market was a bit overbought after the 4-day rally added to the negative tone. Weekly export sales news was slightly disappointing and traders suspect that there will be more announced agreements for China to purchase US soybeans this week on top of the 8.62 million agreed on late Wednesday. Traders see a total of near 12 million tonnes for the week as compared with near 11 million tonnes last year when the China delegation toured the US. China imports a total of near 55 million tonnes per year. Soybeans weekly sales came in at 436,700 metric tonnes for the current marketing year and 178,000 for the next marketing year for a total of 614,700. As of February 9th, cumulative soybean sales stand at 78.8% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 85.2%. Meal sales were 80,100 metric tonnes vs. 95,000 needed each week to reach the USDA forecast. Oil sales were 21,100 metric tonnes vs. 9,000 needed each week to reach the USDA forecast. There were two 2-hour work stoppages at the Brazil port of Paranagua yesterday and traders will monitor the dispute for signs of more serious slowdowns in grain loadings.