(IBTimes) - July soybeans were trading 25 1/2 cents lower late in the overnight session. China futures closed down 2.3% overnight on Greek concerns. Palm oil futures in Malaysia closed down 3.8% after a 2.2% decline on Friday to push to a 3-month low. Asian equity markets remained weak again last night despite a reserve rate requirement cut by China over the weekend. Apparently investors in Asia are concerned about additional slowing ahead and many press outlooks are now predicting other easing actions from the Chinese government to cushion against further slowing. European equity markets also remained very weak as a political setback in Greece put that country back into the headlines again. An Italian debt auction posted the highest yields since January early this morning but decent demand for the Italian debt today kept the situation in Italy from becoming a more major and sustained anxiety event. Early action in the US equity markets showed notably weak action with the S&P falling down to the lowest level since March 7th. A thin US economic report slate today, could leave the risk off vibe in place and leave the anxiety focus squarely on European affairs. There were 46 deliveries against May soybeans this morning. Oil deliveries were 248 contracts. There were no meal deliveries. July soybeans are already down as much as $1.42 1/2 in just nine trading sessions. July soybeans closed 49 1/4 cents lower on the session Friday and closed down 72 1/4 cents for the week. This occurred during a week of a bullish USDA report with funds holding a near record high net long position. Aggressive long liquidation selling from funds emerged due to a "risk off" attitude from investors and from a lack of follow-through buying after the initial reaction to the report. The market was called higher late Sunday but outside market forces turned more negative overnight. The China commerce ministry believes that China soybean imports in May could reach 5.63 million tonnes, up 15% from April and the highest since November. A bearish tone to outside market forces on Friday and general banking concerns helped to pressure commodity markets and this tone spread to grains. Even with the strong recovery in the stock market and less pressure on energy markets, the soybean market failed to see much of a bounce. Fund trader long liquidation selling appears to be the dominate force for the market. A general sense that the USDA report did not bring in any "new" bullish factors for the longer-term outlook plus an excellent weather outlook for the US planting season helped to pressure. December soybean oil is already down to the lowest level since January 31st. Private exporters reported a sale of 139,500 tonnes of US soybeans to unknown destination for the 2011/12 season. For the NOPA crush report this morning, traders see April crush just under 139 million bushels and soybean oil close to the level of March at 2.363 billion pounds. The Commitments of Traders reports as of May 8th showed Non-Commercial traders were net long 236,722 soybean contracts, a decrease of 23,041 for the week and the selling trend is seen as a short-term negative force. Non-Commercial and Nonreportable combined traders held a net long of 196,631 contracts, down 24,192. Commodity Index traders held a net long of 153,452, down 1,200. For meal, Non-Commercial traders were net long 100,229 contracts, down 257 for the week. Non-Commercial and Nonreportable combined traders held a net long of 119,302 contracts, down 3,446 contracts for the week and the selling trend is seen as a short-term negative force. For oil, Non-Commercial traders were net long 13,185 contracts, a decrease of a whopping 17,097 contracts for the week and the selling trend is bearish. Non-Commercial and Nonreportable combined traders held a net long of 20,546 contracts, down 22,290 for the week. Commodity Index traders held a net long of 96,824 contracts, down 2,367.
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