Morning Calls & Comments (8/19)
Soybean futures fell overnight amid expectations Midwest rain will boost crop prospects, while corn was little changed. Wheat futures rose on corrective buying following Thursday’s sharp declines. Malaysian palm oil futures rose 1% on support from a weaker ringgit but posted a 7.1% weekly loss due as crude oil fell. Front-month crude oil fell around $1.00. U.S. stock index futures signal a weaker open, while the U.S. dollar index is nearly 400 points higher.
Rain is expected in the Southern Plains this weekend through the first part of next week, resulting in a notable boost in topsoil moisture for better grazing conditions and for a better environment for early wheat planting in September, World Weather said. “The moisture will come too late for a serious change in summer crop production, although a few cotton fields may experience an increase in bolls.”
In the Midwest, the forecast reduced rain chances during the second week of the outlook, “but with soil conditions mostly favorable and temperatures mild the impact is unlikely to be very great.”