November soybeans were up 15 cents late in the overnight session. Malaysian palm futures closed up 0.6%, and China soybean futures closed 1.3% higher. While equity markets in Asia and Europe were generally stronger during the overnight session, early indications are that US equity markets will open slightly lower later on today. The US Dollar is weaker against most of the major currencies this morning, although it has posted a large gain against the Swiss Franc. A spokesman for the German government stated that there was no need to increase the European debt rescue fund, as it currently is far from being exhausted. The Bank of England indicated that UK inflation will fall rapidly next year due to a weaker global economy. The Chinese Trade surplus during July was $31.5 billion, above market forecasts. German CPI during July was up 2.4% year-on-year, in line with expectations. French Industrial Production during June was down 1.6%, weaker than forecasts. The second leg of the Treasury's refunding, the 10-Year Note auction, will have results announced at 12:00 PM. Major US economic numbers to be released this morning include June Wholesale Trade at 9:00 AM and a private survey of mortgage applications to be released before the session. Meal deliveries against the August contract this morning came in at 104 contracts, with oil deliveries at 51. There are still no deliveries for August soybeans. A general buying spree of commodity markets occurred overnight, as low interest rates and uncertainty over currency moves plus record high gold prices left investors more willing to own hard assets. The weaker dollar is a concern, and the weather outlook also seems to be showing a hotter and drier outlook for the Midwest beginning later next week. The short term weather outlook remains quite favorable, with the exception of a dry pocket in central Illinois. Traders are concerned with heat into later August which might hurt yield potential. China imported 5.35 million tonnes of soybeans in July, up from 4.3 million in June. This pushed year-to-date imports to 29.06 million tonnes, down 5.5% from last year's pace. November soybeans closed sharply lower on the session yesterday, as improving weather and continued weakness in energy prices helped spark additional speculative selling. Corn/soybean spreading helped to pressure. Traders indicated that the weather appears favorable to soybeans in the next 10 days and that corn damage may already be done from the July heat. Weekly crop ratings were down for corn and up for soybeans, and Brazil revised this year's soybean crop higher and corn lower. Brazil raised their production forecast for the 2010/11 season to a record high 75.3 million tonnes, compared with last months estimate of 75 million and 68.7 million for last year. US exporters reported a sale of 25,000 tonnes of US soybean oil to an unknown destination. Even with the demand news, December soybean oil pushed sharply lower on the session to its lowest level since December 1st. Focus is now on the USDA Crop Production and Supply/Demand reports for release on Thursday morning. Traders believe the heat in July may spark a lower yield estimate to push production down 35-40 million bushels from the July USDA estimate of 3.225 billion bushels. However, beginning stocks may be adjusted higher due to sluggish demand and hefty world supply, so the entire 35-40 million may not be pulled off of new crop ending stocks, especially if new crop demand numbers are adjusted lower. Ending stocks for the 2011/12 season are expected to be down 5-10 million bushels from 175 million posted last month. Traders believe that world ending stocks for the 2010/11 season could be adjusted higher by more than 1/2 million tonnes from the previous (and all-time record high) USDA July estimate of 65.88 million tonnes.