July soybeans were trading 11 cents higher late in the overnight session. China futures were up 0.2% overnight. Palm oil futures in Malaysia closed up 0.1% overnight. Equity markets in Asia were mixed to weaker overnight. Easing by the BOJ was partially offset by the S&P ratings agency news overnight on Spain. However, European markets were able to discount the S&P downgrade of Spain overnight and managed to claw back into positive ground off improved action in construction and material issues. US stock markets were showing mixed early action today, as some investors remain concerned toward the debt situation in Europe. The US economic report slate today contains a 1st quarter GDP estimate that is expected to come in with a gain between 2.3% and 2.6%, with expectations for consumer sentiment not expecting much of a change from prior readings. Continued confirmation of strong exports and the need for higher crush due to strong meal demand are factors which have supported old crop futures and could lead to a significant tightening of old crop ending stocks. Gulf basis has remained firm for nearby shipment and improved this week for new crop as well. Traders now see the possibility that old crop US exports could be revised higher by 50-75 million bushels due to the steep drop in South America production. In addition, the crush demand may need to be revised higher by as much as 25 million bushels due to the strong meal demand and a growing export book. As a result, 2011/12 ending stocks could slip to near 150-175 million bushels from 250 million in last months Supply/demand update and 275 million in March. May and July soybeans recovered to close higher on the session yesterday while November soybeans closed sharply lower and near the lows. Solid export sales news helped to support with strong old crop sales. November led the market lower as traders see recent action in soybeans relative to other grains and cotton as a factor which may have attracted extra planted area. Talk of unwinding of soy/corn spreads added to the negative tone early. However, talk of tightening old crop ending stocks due to higher exports and crush plus the outlook for no deliveries for May soybeans on first notice day helped support bull spreading. Weekly export sales for soybeans came in at 926,200 metric tonnes for the current marketing year and 483,000 for the next marketing year for a total of 1.409 million tonnes which was even higher than expectations. Sales of 88,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 232,800 tonnes. Sales of 76,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 700 metric tonnes which was well below expectations. The Buenos Aires Grains Exchange reduced their soybean production estimate by 1 million tonnes from their previous estimate to 43 million tonnes as compared with the April USDA forecast of 45 million tonnes. There have been estimates from the trade in recent days at 40-42 million. Rapeseed production for the EU is expected to push to a six year low to 17.6 million tonnes from 19.1 million last year due to poor weather.