May soybeans were trading down 4 3/4 cents late in the overnight session. China futures closed slightly lower after posting a 17-week high yesterday. Palm oil futures closed 0.6% lower overnight. Asian equity markets were generally higher overnight, as Chinese developers continued to garner some lift from the recent change in policy at the PBOC. However, European equity markets were weaker off some soft PMI data and renewed talk of slowing/recession in the Euro zone. The US equity markets are showing a mixed early track today, as those markets brace from a corporate tax reform plan and a National Association of Realtors home sales reading. The market remains in a steady uptrend channel as losses to oilseeds in South America and ideas that China demand will remain strong for the season ahead has the market attempting to pull some acres away from corn into the planting season. Traders believe that the USDA Outlook Forum will show declining ending stocks for the 2012/13 season. Ideas that recent rains in Argentina could help boost yield helped to limit the advance yesterday. Talk of 100 degree temperatures on dry soils in Southern Brazil over the long weekend provided underlying support. Southern Brazil looks to receive more rain this week. Taiwan bought 58,000 tonnes of soybeans from Brazil for March/April shipment at their tender for US or Brazil soybeans this week. May soybeans saw choppy and volatile trade yesterday but managed to close higher on the session and the rally pushed the market to the highest level since October 17th. Fund traders bought soybeans and sold corn and wheat ahead of the USDA outlook conference which is the first estimate for ending stocks for the coming season. Traders see rising soybean demand and declining planted area and a strong possibility that the USDA will see lower ending stocks for the 2012/13 season than this year and this helped to support. The market felt early pressure from better weather in South America in the forecast for this week. A sell-off in the Dollar and rising US equity markets provided carryover support near the lows and helped the market recover. Ideas of lower South America oilseed production plus losses to the rapeseed crops in Eastern Europe and China this winter helped to support the soybean oil market with December oil moving to the highest level since September 21st. Private exporters reported a sale of 250,000 tonnes of soybeans to China for the 2012/13 time frame. Weekly export inspections came in at 38.4 million bushels which was near the high end of trade expectations. Exports need to average 15.6 million bushels per week to reach the USDA projection for the year.
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