November soybeans are trading 14 cents higher near 7:30 am CST following yesterday's slightly lower trade. The overnight session saw marginal strength early on but gains were extended near the European open. Soybean meal and oil are trading stronger as well. There were no August soybean meal deliveries overnight. There were 257 August soybean oil deliveries bringing the month to date total to 15,140. There were also 51 August soybean deliveries. Malaysian palm oil futures saw slight gains overnight. Chinese shares were sharply lower overnight, as corporate earnings fears were ignited by poor performance at one of the largest Chinese insurers. German and French shares were lower to start today, while equities in the UK managed gains in the wake of better than expected UK data and news that the BOE didn't discuss cutting interest rates in their last meeting. In looking ahead to the US action today, there will be a very active US report slate with the trade seeing Industrial Production/Capacity Utilization as well as CPI, an Empire State Manufacturing report and a NAHB housing index release. The trade generally expects to see some growth from the scheduled data, but other data today could partially offset those expectations. The soybean market is trading sharply higher this morning after it's dip lower yesterday. November soybeans showed a fair amount of resilience yesterday after trading sharply lower midday and climbing off the lows on bullish cash markets and supportive calendar spread trading. Soybean open interest declined 2,752 contracts in light volume as profit taking was noted early in the session. The change in the August weather forecast has given way to a choppy, two sided trade and the pattern may continue until early harvest yields work their way around the market. Frequent rains are forecasted for 80-90% of the US Midwest to finish out this week and temperatures will back off towards 70-80 degrees. The outlook is expected to stick around for the remainder of the month which could stabilize crop conditions from here on out. Yield improvement has most likely been seen in the southeast, south Delta, and parts of the northern Corn Belt. The western and central Midwest remains the critical areas and rainfall this week may not help soybeans as much as expected, however the market may not fully absorb the extent of this until harvest begins. Some weather experts suggest that 35% of the Midwest remains under late stress due to low soil moisture conditions. Cash markets remain firm across the middle Midwest and in the Gulf of Mexico export channels. Crush is steady to higher and yesterday's better than expected NOPA crush report for July provided confirmation of the relentless demand. Better export demand for soybean meal has helped crush margins and soybean oil may see a recovery later this year if El Nino negatively impacts palm oil production. Traders also believe China may be in the market to buy another round of US soybeans if prices see a significant setback. The market is beginning to pay more attention to long term South American weather patterns. Brazilian and Argentinean soybean planting has increased from last year due to high cash prices following last year's severe drought and low production. A brief El Nino pattern is expected early in the growing season for Brazil, but a weaker pattern is expected to take over thereafter. This has the potential for above normal heat and below normal moisture to return to Brazil. The outlook is likely too far out for the market to add risk premium at the moment, but the world oilseed supply will desperately need above average production out of South America next year if price levels are to trend lower.