July soybeans traded 1 1/2 cents lower overnight. Malaysian palm oil closed up about 3/4% after losing some ground late in their trading session. The dollar was higher overnight.

The soybean complex finished sharply higher yesterday, with the July soybean and meal contracts making new highs for the day just prior to the close. Traders indicate that the strength continues to be weather-related. Somewhat drier than expected weather across the Midwest this week should allow planting progress in corn to approach normal levels by the middle of next week, which greatly diminishes the potential for a shift in acreage from corn into soybeans, according to traders. Support has also come from the strike/protest by farmers in Argentina since May 2nd, although farmers there have reportedly offered to suspend the strike for 24 hours after tomorrow if the government will restart talks. Deliveries against the May contracts totaled 333 contracts for soybeans, 196 contracts for meal and 389 contracts for oil. Cash markets are generally very quiet, but yesterday saw a weaker tone for basis levels in the interior US.

Moderate rains fell overnight in southeastern Missouri, central Illinois and in much of Indiana. Rain is expected today in eastern Illinois and southeastern Missouri and on into the eastern Midwest. Further rains are expected tomorrow in the southern Corn Belt and on into eastern Ohio basis. Further rains are expected in the eastern Midwest again on Friday, with two days of generally dry weather across all growing areas on Saturday and Sunday. This should allow good planting progress this week, with most traders expecting to see planting progress in excess of 25% for this week in the next report. Egypt bought 25,000 tonnes and India 24,000 tonnes of soy oil yesterday. No major soybean tenders are scheduled at this time.