U.S. grain markets were closed overnight for the 4th of July holiday. The soybean market will resume normal hours as of the 9:30 cst US open. Dalian soybean futures were up slightly overnight and Malaysian palm oil futures rose to the highest level in more than 5 weeks. China futures were up slightly this morning and Malaysia palm oil futures pushed up 1.2% to a one-month high. Chinese equity markets were mixed overnight, with Hong Kong shares higher and mainland Chinese shares weaker. In general Asian equity markets were mixed with some ongoing anticipation of another Reserve Rate Requirement reduction from China providing the markets with a lift. European shares were also generally higher overnight and that was probably the result of declining Spanish yields and hopes for a series of central bank moves. However, seeing the Chinese surprise the trade with a reduction of 1 Year deposit rates probably provides some support to physical commodity markets. The US scheduled report slate today will officially kick off the monthly payroll report watch, as an ADP job report will be seen along with weekly initial and ongoing claims figures. Also out from the US today is an ISM Non Manufacturing report and a private layoff report. There were no deliveries posted for July soybeans. There were also no meal deliveries but oil deliveries were reported at 2,129 contracts to bring the total this month to 9,620. November soybeans surged to fresh contract highs on Tuesday after traders anticipate increased demand from international buyers and also from fear the U.S. new crop yield is likely to fall on the next USDA production report. The weather forecast remains questionable but storm systems are currently moving through southwest Nebraska and central Iowa and are expected to track northeast, missing the parched farmland of Missouri, Illinois, and Indiana. The 6-10 day maps show better rainfall for the Delta and Southeast but accumulation is expected to be minimal. If the 6 to 10 day forecast holds up that would benefit beans in that area. Weather models disagree over temperatures as one shows a cooler pattern while the other suggests above normal temperatures. The 11-15 day map shows a better chance for rain in the Delta and Midwest but confidence is extremely low at this point in time. The trade is optimistic that soybean conditions could still see significant improvement if there is a shift to better weather for the mid-July to mid-August time frame. However, with short to very short topsoil moisture conditions reaching historically high levels, the trade has already begun to revise yields lower, in some cases near 41 bushels/acre vs. the current USDA yield at 43.9 bushels/acre. With the possibility that Brazil is near sold out levels for exports, the demand shift to the U.S. is likely to be seen just around the corner. China was the buyer of 35,000 tonnes of U.S. soybean oil on Tuesday, further signaling that South America will not have available soybean product supply in the coming months. A highly questionable July weather forecast and potentially explosive demand coming to the U.S. soon, would appear to leave the bull camp with more ammunition than the bear camp.