July soybeans were trading 13 cents lower late in the overnight session. China futures closed down 1.1% on the session. Palm oil futures in Malaysia closed down 0.5% overnight. Asian equity markets were weaker again off lingering concerns toward Greece overnight, but Chinese shares might have seen some fresh selling off talk of a possible delay in the upcoming five-year Chinese planning meeting. Hong Kong shares actually saw their losing streak extend to a fifth straight session. European equity markets were under initial pressure again today with the German stock market managing to buck the trend with minor gains. Early action in the US equity markets showed ongoing weakness again as Euro zone fears haven't been unseated yet and the outlook for the US economy remains suspect. It's a bearish environment when both Ford and Toyota hint at production increases and that news is fully discounted. There were 337 deliveries against May soybeans this morning leaving the total this month at 2,491. Oil deliveries this morning were 641 contracts. There were no meal deliveries and still none for the month. With a massive and record net long position from fund traders and a turn down in outside market forces, July soybeans are already down as much as 88 1/4 cents from last week's peak. Even reports of lower production from South America and strong import demand from China could not slow the liquidation selling trend into the reports. Investors seem to be quick to move to the sidelines on the deteriorating political and economic situation in Europe. Unlike the other grains, the soybean market saw aggressive long liquidation selling to drive the market sharply lower yesterday. A sharp break in gold, copper and crude oil and a strong US dollar added to the bearish tone. Talk of the record high net long position from speculators as of May 1st added to the liquidation selling fears. The USDA confirmed sales of 225,000 tonnes of US soybeans to China which included 60,000 for the 2011/12 season and 165,000 for the new crop season. In addition, the USDA confirmed the sale of 40,000 tonnes of soybean oil to unknown destination for the 2012/13 season. Strength in old crop corn and wheat helped to provide some support but the dominate force of the day was speculative selling which drove July to the lowest level since April 20th and November to the lowest since April 18th. For the report, traders see Argentina production down to near 42 million tonnes from 45 million last month and Brazil production near 64.5 million tonnes from 66 million last month. As a result, world ending stocks for the 2011/12 season are expected to drop to near 53.3 million tonnes from 55.52 million last month. Stocks for the new crop season are expected to recovery to near 59.3 million tonnes. US ending stocks for the 11/12 season are seen near 215 million bushels as compared with 250 million posted in the April update. For 2012/13 season, traders see ending stocks near 165 million bushels but with a range of near 90 to as high as 250 million bushels.