* "It was hot and dry in Argentina over the weekend, a very punishing environment with a lot of damage done to crops," said Drew Lerner, meteorologist for World Weather Inc.

* "There will be rains at midweek of from 0.40 inch to 1.5 inches with locally heavier amounts up to 3 inches, then another high pressure ridge forms leading to another hot weekend with temperatures back into the 90s to 100s (degrees Fahrenheit)," Lerner said.

* USDA confirmed sales of 145,000 tonnes of US soybeans to an unknown destination for delivery during the 2011/12 marketing year.

* Brazilian grains analyst Celeres cut its forecast for soy production to 74.4 million tonnes, down from 75.6 million tonnes in December, due to harsh, dry weather.

* The annual index fund rebalancing occurs this week; traders expect major index funds to buy some 16,000 contracts of soyoil while selling 600 soybeans.

* Funds increase net long in soybeans - CFTC

* Positioning ahead of the release on Thursday of USDA's January crop production reports. Average analyst estimates increased slightly 2011 US soybean production, US 2011/12 ending stocks and lowered estimates for South American soybean production.

* Malaysian crude palm oil futures edged up as weather concerns in top oilseed producing regions trumped renewed worries about the euro zone debt crisis and investor caution ahead of key industry data.

* Key resistance for the January contract at its 100 day moving average of $12.42-3/4 and support at the 50-day ma $11.66-3/4. The nine-day RSI was at 68.