November soybeans were 19 3/4 cents higher overnight. Malaysia palm oil closed up more than 1.6% today. The dollar was lower and crude oil was sharply higher overnight.

Soybeans and oil finished at limit down yesterday, and this has resulted in expanded limits today. Today's limits are at $1.05 for soybeans, up from the normal 70 cents, $30 for meal compared to the normal limit of $20 and 3.5 cents for soy oil compared to the normal 2.5 cents. However, overnight action was higher led by soybeans and meal. Traders note that markets around the world were hit by a wave of deflationary fears yesterday that appear to have dissipated overnight, at least for now. The weekly soybean harvest advanced very rapidly this past week, exceeding trade expectations which were calling for up to 25-26%. Progress is expected to slow this week due to a broad system of rain that is expected to cover western growing areas today before moving to the east tomorrow. The USDA put actual progress as of Sunday at 31% complete compared to 9% last week and 43% last year. Analysts indicate that farmers are concentrating on harvesting soybeans and allowing corn to dry in the fields in areas where that is possible. The 10 year harvested average for this time of year is 40%. India said that its meal exports were down sharply in September after very active exports that lasted from April through August. Traders expect the export pace to pick up again as new supplies become available into late October and November. Deliveries against the October contracts were 57 contracts for meal and 3,010 in oil. Total deliveries to date in oil are 21,130 contracts.

Weather should be warmer in most harvest areas this week as expected, with averages for the week slightly exceeding normal levels in major growing areas. A north/south system of rain is expected in western growing areas today with very wide coverage. This is expected to move as far east as Indiana and eastern Ohio by Wednesday with some lingering rain the extreme eastern growing areas possible on Thursday. No new export tenders are scheduled.