January soybeans were trading 10 cents lower late in the overnight session. China futures were down 1.3% overnight, and palm oil futures in Malaysia closed down 1.1%. Equity markets in Asia and Europe were generally lower, and US equity markets should open with sizable losses. The US Dollar is stronger against most of the major currencies this morning. The Bank of Japan intervened in the currency market by selling large amounts of the Japanese Yen. Japanese Housing Starts during September were down 10.8%, much weaker than expectations. German Retail Sales during September were up 0.4%, lower than forecasts. The only major US economic number to be released this morning will be a private survey of Purchasing Managers in the Chicago area at 8:45. Weakness in energy and metal markets add to the negative tilt this morning. November soybean deliveries totaled 741 contracts this morning which was higher than expected. A continued weak tone for the export market and declining poultry production in the US and ideas that China will try to use more Brazil soybeans in the next few months due to quality issues with the US are all seen as negative forces. China’s Ministry of Commerce sees October soybean imports near 4.83 million tonnes, but November imports were near 3.9 million. Traders see the weekly crop update showing harvest near 88% complete in tonight’s weekly update. Unlike corn, where exports represent just 12.6% of total usage, soybean exports represent 44% of total usage, so the export difficulties are significant. Some traders see a slightly lower yield estimate from the USDA next week, while others see a slight increase. Most, however, see a significant revision lower in exports, which could boost ending stocks. The Commitments of Traders reports as of October 25th showed non-commercial traders were net long 63,577 soybean contracts, down 1,496 for the week. Commodity Index traders held a net long position of 156,137 contracts, up 6,618 for the week, and the buying trend is seen as a short-term positive force. For soybean meal, non-commercial traders were net short 14,757 contracts, down 3,534 contracts for the week, and the short-covering trend is seen as supportive. For soybean oil, non-commercial traders were net short 14,352 contracts, an increase of 8,005 contracts for the week, and the selling trend from fund traders is seen as a bearish development. Trend-following fund traders have pushed their net short position to nearly 28,000 contracts, the highest in more than one year. Nonreportable traders were net short a new record high 8,166 contracts so small traders are also aggressive sellers. While grain markets inched higher on Friday, November soybeans closed 18 cents lower on the session, which left the market up just 4 3/4 cents for the week. November soybean deliveries for first notice day are higher than expected. Crop weather in South America looks favorable.Bron:CME