July soybeans traded 1 cent lower overnight. Malaysian palm oil was up over 3% today. Outside markets were mixed.

Prices finished slightly lower in the entire complex overnight despite a sharp rise in Malaysian palm oil prices. The jump in palm oil was thought to be in response to higher crude oil. In addition, there is talk that Pakistan may import up to 40% more palm oil this year for the July-September time frame than last year. In addition, world vegetable oil markets are nervous with Argentina strike news. Weather forecasts are wetter than traders thought yesterday, and this is causing some concern about the possibility that soybeans will gain a few acres from corn due to late planting of that crop. Farmers in Argentina are planning fresh protests against the government due to a perceived lack of progress in talks over farm export taxes. There were reports yesterday that a resumption of the strike was "imminent," but that has not been the case so a far today, although farm leaders are clearly more pessimistic than they were at the beginning of the week. Most traders seem to believe that the 1st ending stocks forecast from the USDA for ending stocks for the 2008/2009 season (for release tomorrow morning) will be up at least 100 million bushels from this year's tight stocks of just 160 million bushels. Traders also believe that old crop ending stocks may be adjusted lower due to better than expected demand for US soybeans recently. Deliveries against the May contract today were 99 contracts for soybeans, 494 contracts for oil and 617 contracts for meal.

Weather has been as wet or wetter than expected from the rain system that is currently moving through the soybean belt. It dumped substantial amounts in Missouri, central and southern Illinois and Indiana overnight and this morning. This system should last into Friday in the east. Yesterday, weather forecasts seemed to be calling for less rain this weekend and into early next week, but totals are now on the rise. Sunday should see rains in an area bordered on the west by eastern Minnesota and Iowa and the entire Mississippi Valley and extending through the eastern part of the belt. On Tuesday and Wednesday, another system is expected to move into the western and central growing areas. The 2-week outlook is for wetter than normal in all but the extreme western and southwestern soybean belt along with below normal temperatures for much of that period. Planting delays are becoming an issue for soybeans. No major soybean tenders are scheduled at this time.

Weekly export sales for soybeans, released before the open, came in at 41,000 metric tonnes for the current marketing year and 239,600 for the next marketing year for a total of 280,600. Meal sales came in at 122,200 metric tonnes for the current year and 12,100 for the next year for a total of 134,300. Oil sales came in at 11,900 metric tonnes, all for the current marketing year.