November soybeans were 14 cents higher overnight. Malaysian palm oil prices were up 3.1% overnight, continuing yesterday's sharp rally. The dollar was lower overnight and crude oil was higher.

A new high close for the move in November soybeans yesterday was followed by higher prices overnight. Traders noted this morning that soy oil has firmed recently versus meal and now is the leader within the soybean complex. This is thought to stem from a second day of short covering strength in palm oil along with an overnight rally in crude oil. Weather concerns have increased this week with reports from central and eastern Corn Belt growing areas indicating some recent stress to developing crops due to extensive dryness in August. This may be alleviated by rains which pushed up through the Delta as far north as Missouri and western Illinois overnight. More rains are expected starting tomorrow, and these are expected to bring light to moderate rains to the entire central and eastern soybean belt by Monday. Frost is a growing concern according to floor traders, although the current forecast calls for above normal temperatures as far north as Chicago into the first week of September. Commercial hatcheries in the US set 207 million eggs in incubators for the week of August 16th, which has implications for lower broiler production into the fall which might slow meal demand.

Light to moderate rains have pushed up through the Delta into central and eastern Missouri over the past 24-36 hours. Some of this rain is spilling over into south central and SE Iowa and into western and southern Illinois. Forecasts call for rain to hit Iowa, Illinois and Missouri starting tomorrow with this system pushing to the SE to cover most of the central, eastern and southern growing areas by Sunday and Monday. There is some disagreement on amounts with expectations ranging from light to moderate. Temperatures are expected to be above normal in many growing areas into this weekend and again into the first week of September.

Weekly export sales for soybeans, released before the open, came in with net cancellations of 81,100 metric tonnes for the current marketing year and net sales of 357,500 for the next marketing year for a total of 276,400 net sold. Meal sales came in at 42,900 metric tonnes for the current marketing year and 10,200 for the next marketing year for a total of 53,100. Oil sales came in at 5,600 metric tonnes, all for the current marketing year