May soybeans were trading 3/4 of a cent higher late in the overnight session. China futures were down 1.3% overnight. Palm oil futures in Malaysia were closed for holiday. Asian equity markets were higher overnight, with the markets speculating on an upcoming Chinese RRR reduction. However, a series of earthquakes around the Pacific Rim and even into India sparked concerns of Tsunami's in coastal areas. The European markets tried to stabilize overnight but that might have simply been a reaction to a recent concentrated oversold status. However, a poor Italian auction result overnight might provide some late pressure to European shares. It should also be noted that a German auction wasn't fully covered overnight, but yields on that instrument were still very low and that might reduce the anxiety from the lack of auction demand. At least in the early US trade equities were trading moderately higher, perhaps because of a supportive earnings season kick off from Alcoa yesterday afternoon. From the US scheduled report front today, the markets will see a weekly mortgage application survey, US Import/Export prices, a 10 Year US auction result and the release of the Fed's Beige book. There will also be speech from the Fed's Lockhart early in the trading session today. The market is in an overbought technical condition and the technical action yesterday following a so called bullish report could spark more long liquidation, profit-taking type selling today. However, the surge higher in the stock market overnight plus a drop in the dollar may be an offset. Since the January lows, corrective breaks have been very shallow. Many traders already see an increase in planted area of near 1-2 million acres due to the recent run higher in prices. However, the fastest start on record for corn plantings could still hold back the expansion. A new high for the move and lower close yesterday with an outside-day down could be seen as a technical sign of a near-term top. Traders see the market as extremely overbought basis traditional technical indicators and both meal and soybeans showed a record high net long position from fund traders in the last COT report. The early rally pushed the market to the highest level since September 2nd. The tightening old crop ending stocks situation and concerns that the market will need record high yields and a jump in planted area just to avoid extreme tightness for the new crop season continues to support. On top of the USDA monthly update, private exporters reported a sale of 165,000 tonnes of US soybeans to China for the 2012/13 season. The USDA pegged US soybean ending stocks at 250 million bushels which was down 25 million from last month but about 10 million higher than expected. The US demand numbers were revised higher. World ending stocks for the 2011/12 season came in at 55.52 million tonnes which down from 57.3 million last month and down from 69.12 million last year. Brazil production came in at 66 millions, down from 68.5 million last month and down about 1 million tonnes from trade expectations. The Brazil official crop estimate was also released yesterday (CONAB) at just 65.6 million tonnes and this news was seen as supportive. This, along with talk of further losses in Paraguay opens the door for further revisions lower in South America production in future supply/demand updates. South America production is already projected to fall 17.6 million tonnes from last year and this has traders holding US usage numbers high for the end of the 2011/12 season and especially for the new crop season. The USDA revised Argentina production down to 45 million from 46.5 million last month. China customs data reported March soybean imports at 4.83 million tonnes. Soybean oil managed to close higher on the session and pushed to the highest level since September 15th. Ending stocks were revised lower in the US due to expanding bio-diesel usage and palm oil stocks are declining and the vegetable oil markets remain supported by the sharp drop in South America oilseed production.