January soybeans were 15 1/2 cents lower overnight. Palm oil futures in Malaysia finished about 0.2% lower in the February contract after staging a modest rally earlier in today's session. The dollar was higher overnight and crude oil was sharply lower.

Traders said that outside markets were the key again today with crude oil, the overnight S&P and gold all selling off to add to the negative tone. However sources in Malaysia estimate that November exports of palm oil products were up over 5% from October. Weather also helped to support palm oil this morning in the face of weak outside markets with heavy rains causing concern over possible supply reductions. Weekly export sales on Friday showed another week of strong sales in soybeans and very strong sales in oil. The biggest buyer in soybeans was China, which took a whopping 84% of this week's net soybean sales. The biggest sale in oil was for 15,000 tonnes to an unknown buyer. Egypt was the biggest buyer in meal. Net sales for soybeans came in at 781,600 tonnes. Meal sales were 59,700 tonnes and oil sales were 17,100 tonnes. Deliveries against the December contracts today were just 38 contracts in oil and zero in meal. The oil total is down sharply from first notice day on Friday with the monthly total for oil at 1,527. The plan in China to buy up more soybeans for the state reserve has caused many crushing plants to slow or close as margins have been hurt. Imported soybeans from the US are cheaper and giving crushing plants near ports an advantage. This could support firm exports of US soybeans to China ahead until the price differential is fixed. China already represents near 50% of total US export sales.

Despite scattered rains over the weekend, conditions continue to get drier in Brazil in the key provinces of Rio Grande do Sul and Parana. Rains last week in Argentina were beneficial to corn and soybeans, but many areas remain dry. Conditions are expected to be mainly dry there through Friday. Forecasts in Argentina call for scattered light showers this week. In the US, a burst of colder air has moved deep into the heart of the Midwest with snow in Illinois, much of Indiana and parts of Missouri. Dry weather is then expected in much of the plains and Midwest through Friday. Egypt is tendering for up to 15,000 tonnes of sun oil. Iran is in the market for up to 25,000 tonnes of soy oil and up to 20,000 tonnes of sun oil. India is in the market to buy 26,500 tonnes of edible oils by mid-November.