Soybean prices closed firm on Tuesday up 13 cents. With the important acreage report just a day away traders are coming to the realization that Farmers have a huge incentive to commit more acres to corn due to economics rather than Soybeans. This has some in the trade concerned that not enough bean acres will be committed this year to satisfy the worlds demand. While we debate daily whether China will buy US corn, they are proven regular buyers of US soybeans. Oil World estimated 2010-11 Chinese Soybean imports at 55.8 mmt, up 5.5 mmt from last year. They kept their Brazilian bean crop estimate at 70.5 mmt. Agroconsult has a much higher estimate for Brazil at 72.7 mmt. up from their previous estimate of 72 mmt. Volume on Tuesday was moderate, Soybeans traded 151,794, Meal 57,613 and Oil traded 73,005. Funds were net buyers of an estimated 7,000 Soybeans, 2,500 Oil and 3,500 Meal.

Opening call higher. The all important March acreage report is due out tomorrow. The range of estimates are for 90.4 to 93 million acres for corn with the average at 91.8. Soybean acre estimates range from 74.9 to 78.5 mil acres with an average of 76.8. All Wheat estimates range from 56.5 to 58.4 with an average of 57.2. Beyond this report look for weather to take a more important role especially in the Midwest. Planting has begun in the south and cold weather in the North could affect acreage changes going forward. Chinese food and health officials arrived in Argentina this week to work on a protocol that would pave the way for Argentine corn exports. Look for a choppy trade today as traders position themselves ahead of the acreage report due out tomorrow morning.

Opening Call Soybeans 2 to 4 cents higher, Meal steady and Oil 5 to 10 higher.

Top News

-- Dalian Jan. Soybean futures were up +2 @ 4,635 yuan/mt., Jan. Soymeal futures were up +13 @ 3,407 yuan/mt. -- Dalian Sept. Palm Oil was up +106 @ 9,156 yuan/mt., Sept. Soyoil was up +98 @ 10,106 yuan/mt. -- In Malaysia Jun. Palm Oil futures were up +60 @ 3,312 ringgit/mt., range on the day was 3,323 to 3,268. -- Liffe May Rapeseed futures were up +3.75 @ 478.75 euros/mt., Aug. up +3.50 @ 431.25 euros/mt. -- Globex Soybean Vol. 138,508 ; Pit Vol. 9,950; Open Interest Change: + 4,048 -- Weather: 6-10 Day Forecast: Normal to Below Temps. Normal to Below Precip West, Above East.

-- Outside markets: Energy Complex -0.25 at $104.54; Gold & Silver: +12.1 at $1429.6 & +0.733 at $37.720; US $ -0.022 at $76.480

LaSalle Street News Cash Markets

-- CIF Soybeans steady off 10 . Mar. +48 to +60, Apr +?? to +63, May +?? to +64, J/J +54 to +62, Oct. +?? to +70, Nov. +?? to +74, Jan. +65 to +73