July soybeans were trading 6 cents lower near 7:30 cst. China futures closed down 0.3% while Palm oil futures fell 2.1%. Chinese stocks were down again and that also resulted in a monthly loss in most equity market measures. European equity markets and the FTSE mounted a recovery effort but many investors were not expecting anything more than a temporary technical reprieve from the European debt saga. The US markets were showing minor gains but that action didn't seem to be the result of a definitive bullish headline development or potential. The US economic report slate today has a private jobs report due out early from ADP, initial and ongoing claims, a Chicago PMI report from the ISM and a Fed speech early in the session. Outside market forces are weak and traders see a long liquidation selling threat for the July contract. Sluggish demand from China and talk of weakening hog prices in China have been seen as negative forces. From state reserves, China sold 75,788 tonnes in an auction for near 600,000 tonnes overnight. The demand and economic concerns are clashing with an uncertain weather outlook and traders are beginning to second-guess the outlook for record-type yields in the US. Rain amounts across much of the Midwest in May were much lower than normal and while there is rain in the forecast for much of the Midwest through Wednesday, traders see a return to a ridging pattern which could bring a continued warmer and drier than normal set-up into mid-June. November soybeans spent much of the session yesterday lower on the day but saw late buying support on longer-term weather uncertainties to support late. July soybeans saw a strong recovery off of the mid-session lows but still closed moderately lower on the day. Outside market forces were consider very negative and this helped to spark long liquidation selling in commodity markets; especially markets like soybeans where fund traders hold a hefty net long positions. European economic woes and a surge in the US dollar to the highest level since August of 2010 has added to the risk off attitude. While traders see dry weather stress as an issue, talk of good rains this week in the Midwest and more rain for early next week before a ridging pattern moves in has kept weather as a negative force. Confirmation that China is NOT planning another major stimulus program was also seen as a negative factor for the global economy. China vegoil markets are sluggish short-term, with talk of plenty of palm oil already at ports but a tightening supply of rapeseed due to poor weather for April and May could boost rapeseed imports to near record highs. Imports for the first four months of the year are at 1.06 million tonnes, up 308% from last year's pace and traders see imports for the year above 3 million tonnes. Broiler eggs set for the week came in at 97% of last year. There were 111 deliverable meal receipts cancelled overnight which leaves just 157 contracts left in deliverable position.