July soybeans traded 5 1/2 cents higher overnight. Malaysian palm oil was down about 1.1%. Outside markets were lower overnight and the dollar was higher.

Soybeans have traded higher so far this week despite sharply weaker corn. Traders indicate that this comes mainly from the shift to a drier weather forecast for this week, which should allow more rapid planting progress for corn that may take planting progress for that crop to only 5-9% below normal rates by next week's Crop Progress Reports, according to one trader. While rains are still expected tomorrow and Thursday, the expected coverage is less widespread and totals are about 1/2 inch less than previously forecast. This reduces the potential for a shift of acres out of corn and into soybeans, according to traders and analysts. Soybeans are also supported by events in Argentina where farm leaders still cite a lack of progress in recent talks with the government as a major concern. There is no news yet on whether the current strike/protests by farmers will be extended beyond the May 15th deadline. Reports from Argentina also indicate that yields on late-planted soybeans may be reduced due to frost and dry weather late in the growing season. The weekly soybeans planting report for the US showed planting at 11% complete compared to 26% last year. The 10 year average for this time of year is 27%. The highest percent complete at this point was 47% in 2000, while the lowest was 3% in 1984. Deliveries against the May contract were 467 contracts for soybeans, 22 contracts for meal and 15 contracts for oil.

The forecast for this week is generally drier than was thought late last week. Rains are expected in the extreme western soybean and corn belts today. Tomorrow should see rains across much of Illinois and parts of Indiana with a band of showers extending south/southwest into Arkansas. Thursday should see rains south of central Illinois with dry weather expected in most growing areas into the weekend. Forecast rainfall totals may be about 1/2 inch less than previously forecast and more scattered. No major soybean tenders are scheduled at this time.