July soybeans were trading 7 1/2 cents higher near 7:00 cst after trading as much as 15 1/4 cents higher overnight. November is lower after trading as much as 12 1/2 higher. China futures closed 0.5% higher while Malaysia palm oil prices were down 0.8%. Chinese stocks were weaker overnight, as investors discounted recent slightly better than expected Chinese data and it also seemed as if Asian investors were apparently looking ahead to the upcoming Greek election with some concern. However, European equities were slightly higher as the trade was attempting to play up the latest solution to the EU debt crisis, with a bad bank approach. Early US equity market action was minimally higher, as the hope for a tighter fiscal union in the EU was seen as a fresh positive for the troubled Euro zone. The US report slate is somewhat active today, but most of the data is 3rd or 4th tier data, from 3rd party independent sources like the small business optimism index, a couple of weekly private chain store sales reports, the IBD consumer confidence index and a monthly US Treasury Budget statement. The USDA supply/demand report looks to be the key feature today to set short-term direction. This is the first report to be released while the market is open so volatility will likely surge near 7:30 central time. The key numbers for the report include the ending stocks which were 210 million bushels last month for the 2011/12 season and 145 million for the 2012/13 season. The market is likely to turn up on any number under 190 for 2011/12 and under 140 for 2012/13. The market is likely to turn down on any number over 200 for 2011/12 and over 150 for 2012/13 season. Traders also see a reduction of about 1 million tonnes in Argentina production from 21.5 million last month and maybe up 500,000 or so for Brazil production which was at 65 million tonnes in May. Weekly crop condition reports were supportive late yesterday and helped drive the market higher overnight. Soybeans rated good to excellent came in at 60% compared to 65% last week and 67% last year. The 10 year average for this time of year is 66%. The highest percent rated good/excellent was 74% in 2010 while the lowest was 55% in 2001. The weekly Soybeans Planting report showed 97% complete compared to 94% last week and 81% last year. The 10 year average for this time of year is 87%. The Argentina farmers strike is expected to end tonight after one week of no cash sales but the strike does not seem to have disrupted exports or crush. July soybeans closed lower yesterday after first moving to the highest level since May 17th. A less threatening weather forecast plus a major shift from bullish to bearish for outside market forces helped to pressure. The forecast for next week is not as hot and a little wetter for the western Corn Belt which could keep some areas in the East needing rain. Scattered to moderate rains moved across Iowa and across Illinois and Indiana yesterday and south but rain amounts seemed less than expected in the northern parts of these states but a bit better than expected south. Areas that miss out on the moisture (1/4 to 3/4 inches of about 75% coverage) could be under significant stress into next week. Temperatures are still expected to be above normal next week; just not as hot as the models indicated on Friday. The extended forecast models show more rain coming but this is still uncertain. Weekly export inspections came in at 14.2 million bushels which was right on expectations. Inspections need to average 10.9 million bushels per week to reach the USDA projection for the season.