July soybeans were down 4 cents late in the overnight session. Malaysia palm oil futures closed slightly lower after falling as much as 1.3% on the session. China soybean futures closed down 0.9%. Outside market forces looked mixed, as a weaker US dollar clashed with a negative tone for commodity markets and weaker prices for metals and energy markets. There were no deliveries for May soybeans this morning, but there were 161 meal deliveries and 953 oil deliveries. The market saw increased selling pressures from fund traders yesterday, and the negative tone was still intact overnight. Ideas that India and China are both fighting back hard on inflationary concerns is seen as a negative factor, and funds also appear to be lightening up on commodity market longs for one reason or another. Weak demand from China appears to be one of the key negative factors, and this has helped ease tightness concerns for the end of the 2010/11 season. Chinese officials failed to find any bids for 299,972 tonnes of state reserve soybeans offered overnight, with talk of continued weak crush margins in China. July soybeans closed sharply lower on the session yesterday, as a collapse in silver prices late in the day seemed to spread over to the soybean pit with late selling driving July soybeans to as low as 1355 1/4 before a minor bounce into the close. Weakness in energy markets added to the negative tone late in the day. Soybean futures followed the weak action in outside markets to trade moderately lower on the session early. With some traders raising South America production estimates and a weak tone for China-related commodity markets, fund selling was fairly active to help push the market sharply lower into the mid-session. The firm US dollar and weakness in the other grains plus continued talk that some of the eastern and southern Corn Belt corn acres might need to shift to soybeans helped to pressure the market as well. Even with a turn down in the US dollar into midday, soybean and product prices stayed under pressure.