July soybeans were trading 1/2 of a cent lower late in the overnight session. China futures were down 0.7% overnight. Palm oil futures in Malaysia were down 2.4%. Asian equity markets were weaker ahead of the European debt auctions overnight. However, the Shanghai equity market was higher as that market was able to buck the negative trend in the rest of the region off suggestions that the Chinese might liberalize their currency exchange rate mechanism. European equity markets were mostly higher to start and that was somewhat surprising considering that Spanish and Italian debt yields were on the rise. US stock markets slightly higher but the markets generally remain disappointed in the track of the US economy in the wake of a disappointing private employment survey on Wednesday morning. Therefore the markets are likely to pay significant attention this morning to US initial claims and another private jobs report that is due out very early in the Thursday morning US trade. There will also be two Fed members taking part in a conference on the west coast today and that panel discussion starts around 10:30 am cst. There were 40 deliveries against May soybeans this morning bringing the total this month to 2,125. Oil deliveries this morning were 1,462 contracts. There were no meal deliveries for the fourth day in a row. The wheat market led grain markets lower and then soybeans and meal reluctantly fell late in the session yesterday as profit-taking set in ahead of next week's USDA Supply/demand updates. A strong commercial stopper of 486 of the 576 soybean deliveries yesterday and this helped drive soybeans and meal to new highs early yesterday. The lack of a significant weather issue for all of the grains and expectations for a bumper wheat harvest in a few more weeks helped to turn the psychology more negative. The weekly hatchery report showed that eggs set were down 5% from last year. July soybeans pushed to a new contract high of 1512 1/4 yesterday before closing at 1485. The reversal after taking out the range of the past three trading sessions is seen as a negative technical development. The outlook for good moisture in the next 10 days across much of the plains and Midwest plus continued talk of the overbought condition of the market helped to pressure. The sharp break in wheat, and then corn due to the weather impact eventually attracted a long liquidation selling trend in soybeans. Private exporters reported the sale of 204,000 tonnes of US soybeans to unknown destination for the 2012/13 season. In addition, China bought 30,000 tonnes of US soybean oil for the 2011/12 season. Traders believe the China purchase may have been to replenish reserve stocks. China typically buys oil from South America but Argentina crop issues may have helped tighten supply. A lack of deliveries and talk that the tightening supply of meal from South America will boost demand for US meal helped drive July meal to a new high for the move but the reversal and lower close is seen as a negative technical development. Brazil exported 4.43 million tonnes of soybeans in April from 4.24 million in March and from 5.09 million last year.