November soybeans were 21 1/4 cents higher overnight. Malaysian palm oil prices rallied sharply after making new 11-month and 1-year lows this week. The dollar was higher overnight and crude oil was marginally higher.

Traders indicate that the soybean market continues to focus on concern over the potential for a lesser yield than the 40.5 bushels per acre forecast on the August Supply and Demand Report. Yesterday's very volatile session ended lower, but soybeans followed up with a strong advance overnight. Argentina is again a potential bullish factor in the US soybean market with the government thought to be delaying in terms of following through on the Senate's rejection of a controversial export tax last month. Farmers are saying that export tax rates have risen and protests will be stepped up. They say that a renewal of the strike is a possibility, although that does not appear imminent. The Pro Farmer crop tour continues with some cash market sources continuing to say that pod counts are not backing up the recent USDA estimate. Palm oil prices surged overnight, but traders there say that this comes against a background of continued fears of defaults and deferrals of existing export sales. China's Ministry of Commerce says that it expects a total of 3.37 million tonnes of soybean imports to arrive in August.

Dry conditions remain a concern in the Midwest with the first significant rain not expected until Friday. More widespread coverage is expected on Saturday and Sunday, but amounts are not expected to be substantial. The Delta up through Arkansas saw further relief over the past 24-36 hours with more rain possible into next week. The 6-10 day forecast calls for dry weather in most growing areas with above normal temperatures in the western corn and soybean belt.