July soybeans were trading 11 1/2 cents higher near 7:30 cst. China futures closed up nearly 1% overnight and Palm oil futures were up 0.4%. Hong Kong shares managed minor short covering gains overnight, while Shanghai equities mostly tracked sideways, as the hope for G7 easing was at least partially countervailed by news of burdensome Spanish borrowing costs. European equity markets were softer overnight, with the press in that region still touting ideas that persistent weakness in equities is a signal of a probable return to sustained negative growth in the Euro zone. However, the European markets were seeing some minimal support off hopes that an emergency G7 conference call might yield something positive, especially after news of easing from the Australian central bank was noted overnight. The US economic report slate today has an ISM-Non manufacturing report and there will be 3 Fed speeches today, the first of which is scheduled for 7:00 cst. Not surprisingly, the trade today expects the ISM figures to show a minor contraction. There will also be a series of private chain store sales figures in the early morning trade, with those measures fresh off weak figures last week. The weather outlook has a bit of news for the bulls and the bears as the drier and warmer outlook for the next 8 or 9 days is expected to significantly dry the Midwest soil conditions and could spark some deterioration in crops. However, the extended forecast models show rain and cooler weather into mid-June which could help boost crop conditions if the more normal weather materializes. The market found support overnight from the initial crop conditions report which came in below trade expectations. The weekly update showed that 65% of the crop was rated good/excellent compared to 69% expected. The 10 year average for this time of year is 71%. The highest percent rated good/excellent was 71% in 2007 while the lowest was 56% in 2001. The weekly Soybeans Planting report showed 94% of the crop planted compared to 89% last week and 63% last year. The 10 year average for this time of year is 78%. Malaysia palm oil production is expected to pick up over the next few months and the country is exploring ways to better compete with Indonesia for the export market. With most of the new news yesterday focused on the potential tightening of new crop supply and a general fear that fund traders will be aggressively rolling longs out of old crop and to new crop, July was under pressure and November soybeans were well supported yesterday. November soybeans traded to a new low for the move and to the lowest level since February 13th early but closed moderately higher on the day. On the daily wire, the USDA reported a sale of 165,000 tonnes of US soybeans to China for the new crop season. There are mixed views for next week after temperatures move to above normal on the weekend. Some traders see better rain coverage and others see only light coverage next week so some areas could be under some dryness stress into mid-June; especially southern Illinois. Weekly export inspections come in at 16.96 million bushels which was higher than expected and compares with 11.4 million bushels necessary each week to reach the USDA projection for the season.