July soybeans were trading 6 cents higher near 7:30 cst. China futures closed down 0.4% following the weak US economic news on Friday. Palm oil futures fell 1.6% to a new low for the year. Asian and Chinese equity markets were weaker again overnight with some measures falling down to the lowest levels of 2012. Clearly fears of global slowing remain in place from last week and ongoing fears toward the Spanish banking sector also remain in place. European equity markets were weaker led by sharp declines in Germany, where prices might have been playing catch up to part of the Friday US losses. While there continues to be talk of easing action from either the ECB or the US Fed later this week it would appear that many markets are still poised to move lower until some type of official easing action is seen or until the economic headline flow improves dramatically. Unchanged Euro zone PPI readings for April overnight were probably seen as another sign of weakening and it is unlikely that a US Factory orders report release later this morning will be able to completely alter an entrenched expectation of global slowing. Rain was less than expected for the weekend and the next few weeks look to bring some rain each week but not enough to offset needs. This could leave a somewhat stressful condition going into mid-June. Traders see the weekly crop updates showing crop conditions near 66-69% good to excellent. The USDA attache in China sees oilseed output near 55 million tonnes, down 2.7% from last year. Brazil exports in May hit a record high 7.28 million tonnes from 5.31 million last year. Bull spreads were active on Friday supporting the nearby contract. July soybeans saw a dramatic, 40-cent turn higher by mid-session after trading sharply lower early. The lows occurred right near the US Employment and the weekly Export Sales reports. A collapse in the stock market and weak economic news for China and Europe plus poor employment news in the US helped to pressure. However, a somewhat threatening weather outlook for the US, a turn sharply higher in gold and a spike top move in the US dollar lent some support. A 50% correction of the December to May rally had left technical support at 1319 July and a turn higher from this level may have helped support buying. Weekly export sales came in at 418,700 tonnes which was below trade expectations. The Commitments of Traders reports as of May 29th for Soybeans showed Non-Commercial traders were net long 204,374 contracts, a decrease of 3,650 contracts for the week and the long liquidation selling trend is seen as a short-term negative force. Non-Commercial and Nonreportable combined traders held a net long of 171,065 contracts, down 3,244. For Soybean Meal, Non-Commercial traders were net long 84,573 contracts, a decrease of 5,670 contracts for the week. Non-Commercial and Nonreportable combined traders held a net long of 104,269 contracts, down 2,293. For Soybean Oil, Non-Commercial traders were net short 27,366 contracts, an increase of 11,188 contracts for the week. Non-Commercial and Nonreportable combined traders held a net short of 32,511 contracts, up a whopping 12,640 contracts for the week. Commodity Index traders held a net long of 88,006 contracts, down 4,032. The selling trend in oil is a short-term negative but the market appears oversold.