May soybeans were trading 13 3/4 cents lower late in the overnight session. China futures were down 0.4% overnight. Palm oil futures in Malaysia closed down 0.7% overnight. Asian equity markets were stronger overnight, with Chinese investors relieved with the lack of disconcerting news flow from Europe. The Asian trade might also have seen some lift off US earnings news and there also seemed to be some ongoing hopes of easing from the PBOC. European markets were weaker to start today on what appeared to be a classic profit taking setback. Early in the US trade today share prices were mixed, with the markets somewhat disappointed by tech sector earnings news yesterday afternoon. The US economic report slate today is rather thin, with a weekly mortgage application survey released early in the day and little else on the docket. There will be a series of comments from the US Treasury Secretary and World Bank officials today. A bearish tilt to outside market forces and more talk of the overbought condition of the market has helped to spark follow-through technical selling overnight after a weak tone to the market late yesterday. May soybeans closed slightly higher on the session yesterday but well off the early highs as long liquidation selling in corn emerged to drive corn moderately lower on the session. May soybeans were up 14 1/2 cents higher on the day early in the session but traded down to less than 3 higher late in the day before a bounce. A much stronger tone regarding the global growth outlook and the surge in the US stock market plus news of further strong export demand for US soybeans helped spark the solid gains early. The USDA confirmed sales of 225,000 tonnes of US soybeans to unknown destination with 110,000 tonnes for the 2011/12 season and 115,000 for the 12/13 season. Taiwan bought 60,000 tonnes of Brazil soybeans in their tender for US or Brazil soybeans which was expected. More estimates for a smaller South America crop than the April USDA estimate and talk of disappointing yields in Argentina added to the positive tone. However, the market lacked new buying interest on the rally and weakness in old crop corn seemed to entice some late in the day, long liquidation selling. German Farm Coops believe the winter rapeseed crop will come in near 4.3 million tonnes from 4.8 million as their March estimate due to cold weather damage.
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