May soybeans were trading 2 cents higher late in the overnight session. China futures closed slightly lower overnight and palm oil futures in Malaysia closed 0.8% lower. Asian equity markets were higher overnight feeding off the upcoming European LTRO injection. European equity markets were also higher in anticipation of the European liquidity effort. Early US equity market action was showing minimally positive action. The ECB LTRO offering was apparently slightly higher than some expectations at 529 billion Euros, but the instant reaction was for some softening in European and US equity prices. Some players saw the news of 800 bidders in the LTRO as a sign that more banks needed the money, while others suggest that the success of the prior LTRO simply inspired more players this time around. In looking ahead to the US trade today, the markets will see a weekly mortgage application survey, a US 4th quarter GDP report, a Chicago PMI reading and a Fed Beige book release in the afternoon trade. The market will probably take notice of the Chicago PMI reading which is largely expected to post a slight improvement. There will also be a couple Fed speeches today, with the US Fed Chairman providing semi annual testimony to Congress and that will be capped off later on by the release of the Fed Beige Book. The lack of negative news from outside market forces plus the lack of Brazil offers for April shipment plus talk of further demand from China are all factors which helped support further gains overnight and a move to the highest level since September 22nd. The National Grain and Oils Information Centre in China indicated that China demand for imports has improved with improving crush margins. Meal prices have recovered in China as pork producers are restocking supply. Traders indicated that reports from the prominent research firm Oil World that the 19 million tonne drop in world production of soybeans this year to 246.5 million tonnes will be the largest year-on-year reduction on record helped to support the rally yesterday. In addition, there was talk that China booked near 4-5 cargoes of US soybeans for April shipment was seen as a supportive force. Brazil is normally active exporter for April but traders indicated that the long line to load cargoes in Brazil plus uncertainty of supply has limited offers. May soybeans closed sharply higher on the session yesterday even after the early weakness due to sluggish economic data as a recover in outside market forces helped support. Ideas that the market needs to continue moving higher over the short-term in order to draw out cash soybeans from producers as well as enticing producers to shift potential acreage away from corn and to soybeans during the coming US growing season has helped to strengthen the recent uptrend. Cash basis levels remain firm. For first notice day, there were no soybean deliveries as compared with expectations for 0-300 contracts. There was only 1 contract for meal deliveries vs. 0-300 contracts expected and oil deliveries came in at 2,025 compared with 2,000-4,000 contracts expected.