July soybeans were trading 21 1/4 cents higher late in the overnight session. China futures closed down 0.7% overnight as the European situation helped keep the bears in control. Palm oil futures in Malaysia closed up 2.4%. The Hong Kong market overnight managed a positive session after a long string of recent losses. A decline in foreign direct investment in China also left economic views suspect in the region but it did appear as if somewhat favorable German economic numbers overnight helped the Asian markets find some support. European equity markets were initially mixed overnight with gainers barely out numbering the losers. While news of a +0.5% gain in German GDP wouldn't normally be a big development, expectations for activity in the Euro zone have really been deflated recently and the trade seems to have garnered a small measure of confidence from the positive quarter over quarter performance in Germany. Early action in the US equity markets also showed some strength, but it was unclear whether today's gains were simply short covering or an actual improvement in sentiment. The focus of the trade later today is likely to center on the US retail sales report, which is expected to post a very minimal gain. July soybeans fell 9% in just 9 trading sessions before finding support and 1376 early yesterday. Massive fund and spec long liquidation selling was noted in recent days as the focus of attention appears to be on the global economic slowdown and the new crop supply outlook. The 2012/13 balance sheet is already very tight and any weather which might spark a less than optimal yield outlook for soybeans this year could spark significant new buying. The weekly soybean planting report showed that 46% of the crop was already planted which was about 3% higher than expected. This compares with 24% complete last week and 17% last year. The 10 year average for this time of year is 27%. The highest percent complete was 54% in 2000. Traders see the current fast start to the crop and a lack of dry areas in the country as a bearish force. July soybeans closed moderately lower on the session yesterday and pushed to the lowest level since March 30th. Talk that there will be more planted acres than the March 30th USDA intentions report plus ideas that the winter wheat crop will be harvested earlier than normal which could benefit double-cropped soybeans helped to pressure. Long liquidation selling from fund traders appears to be the key bearish force. The market saw bearish news from outside markets, good weather and a lack of new export news as reasons for the continued long liquidation selling trend early yesterday. A dry forecast for the week ahead suggests a very active planting week and much of the crop planted by this time next week. The NOPA crush report was considered bearish on demand as the April crush came in at just 131.7 million bushels which was about 3 million below trade expectations. Oil stocks were higher than expected at 2.385 billion pounds. Weekly export inspections came in at 20.3 million bushels which was well above trade expectations and compares with 11.9 million bushels per week to reach the USDA projection.