November soybeans were up 8 cents late in the overnight session. Malaysia palm futures closed 0.6% higher and China soybean futures closed down slightly. Outside market forces look positive today with a weaker US dollar and some strength in the energy markets. The market saw deteriorating crop conditions, a weaker US dollar and less negative outside market forces overnight as a positive set-up to support solid gains. The upside may have been limited by a more normal weather forecast into early August and the outlook for somewhat cooler weather this week but improved chances of rain in some of the drier areas of the eastern Corn Belt. While crop conditions deteriorated in the past week, traders are already looking for an improvement in crop conditions into early August given more normal rain and less heat. The weekly Soybeans Conditions report showed that 62% of the crop was rated good/excellent compared to 64% last week and 67% last year. The 10 year average for this time of year is 60%. November soybeans closed moderately lower on the session yesterday but near 14 cents up from the lows. Funds were fairly aggressive sellers for the first part of the session but a decent recovery in the stock market helped ease the selling late and short-covering supported the bounce off of the lows. Better than expected weekend rains for parts of the Midwest plus rain in the forecast this week helped to pressure the market early and weakness in equity and energy markets added to the negative tone. Traders see the cooler weather and rain for the northern half of the Corn Belt as beneficial to crops but the weather heats up again for the southern growing areas into the middle of the week. Weekly export inspections for soybeans came in at 5.158 million bushels which was up from 3.774 million last week but still well below expectations. Exports need to average 13.3 million bushels per week to reach the USDA projection for the year. Traders noted weaker basis levels for soybeans at the gulf due to sluggish demand, especially for old crop.