July soybeans traded 15 3/4 cents higher overnight. Malaysian palm oil was up about 1.1% today. Outside markets were higher. The dollar was also higher overnight.

Trade was mixed in the soybean complex during most of the session yesterday, despite sharply higher price levels in corn and wheat. Prices were higher overnight in a session that saw steady gains by the July contract right into the close. Traders indicate that buying is mainly short covering ahead of this morning's USDA Supply/Demand Report as well as over a renewal of protests by farmers in Argentina. Some support may have also come to oil from higher prices in Malaysia, but traders there are said to be concerned over the continued lack of US export activity during the 2nd Quarter. Deliveries against the May contract this morning totaled 0 contracts for soybeans, 409 contracts for meal and 426 contracts for oil. Wet weather is a major concern in the corn market, with many traders continuing to indicate that delays in planting corn will shift acreage into soybeans. However, a continuation of wet and cool weather on the 6-10 day forecasts has caused some traders to start talking about the possibility of lower yields for soybeans as well. This week's export sales for soybeans, released before the open yesterday, came in at 41,000 tonnes for old crop and 239,600 tonnes for new crop. Sales of only 21,600 are needed each week to reach the old crop export projection. Total sales to date stand at 98.7% of the projection versus a 5-year average of 94.3%. Net meal sales were 122,200 tonnes for old crop and 12,100 tonnes for new crop. Sales of 91,500 tonnes are needed each week to reach the old crop projections. Total sales to date stand at 75.6% of the projection compared to a 5-year average of 73.5%. Net oil sales were 11,900 tonnes for old crop and zero for new crop. Sales of 12,700 tonnes are needed each week to reach the export projection. Total sales to date stand at 77.8% of the projected total compared to a 5-year average of 55.3%. Venezuela was the biggest buyer in meal and oil, and Germany was the biggest buyer in soybeans. The Brazilian version of the USDA - Conab - lowered its estimate of this year's soybean crop from 60 million tonnes to 59.5 million tonnes yesterday.

The weather pattern continues to call for rain in major growing areas. Rains moved into Missouri and parts of Iowa again overnight. Today should see more rain across most of Missouri and western Iowa. Sunday is expected to bring at least a half inch to the entire soybean belt from Chicago on south with the exception of the western and eastern edges and the Delta. Parts of Missouri and west central Illinois could get in excess of 1 1/2 inches on Sunday. More rain is still forecast for next Wednesday, although this may be confined to the central and eastern growing areas and may only last for one day. Expectations of cooler than normal weather are starting to be a concern. No major soybean tenders are scheduled at this time.