November soybeans were 6 cents higher overnight. Malaysian palm oil futures rose 2.8% overnight. Crude oil and the dollar were mixed to slightly higher overnight.

Soybeans broke sharply yesterday along with the grains and then staged a sharp rally during mid session to briefly trade higher on the day. However, late selling took the market lower into the close with the November contract finishing near mid range. Meal gained on oil throughout the day yesterday on active spreading between those markets. Funds were sellers early. Prices were higher overnight in the complex with traders crediting the strength to a slight rebound in crude oil and a significant recovery in palm oil after yesterday's sharp drop. The Delta may get scattered rains over the next week although hot temperatures are expected to persist and the rains may not be enough to reverse recent stress to the soybean crop there. The USDA will issue its Export Sales Report this morning and traders are looking for sales to be higher than last week in soybeans, meal and oil. Cash markets were quiet yesterday and mostly steady in the interior with higher basis levels reported in western Iowa. The US Census Crush for June came in at 140.9 million bushels versus 148.7 million a year ago and 129.8 as the 5-year average. The cumulative crush of 1,533.3 million bushels is running at 83.3% of the USDA projection for the entire marketing year. This compares with the 5-year average pace for this time of year at 84.2%. The US Soybean Oil stocks for the end of June came in at 2.894 billion pounds versus 2.979 billion the previous month and 3.360 billion a year ago. This compares with an average stock level of 2.255 billion pounds for this time of year.

Over the past 24 hours, moderate rains have hit the western half of Iowa and northern Missouri. Scattered heavy amounts fell in Iowa with a greater concentration of heavy totals in northern Missouri. Above normal rain is expected over the next 5 days in a broad area that stretches from the northern Plains through all of Iowa and on into all but the northern edge of the central and eastern corn belt. The north central soybean belt should see normal rainfall. The heaviest totals are expected in SE Iowa and a small corner of west central Illinois. The northern corn belt is expected to be dry starting Sunday and lasting through the middle of next week. Heat is expected to build over most growing areas starting about the first of August. The southern Delta should see rain today from Hurricane Dolly, but other areas may have to wait until Sunday through Tuesday for coverage. Northern Louisiana may get skipped altogether through the middle of next week. Bangladesh has issued a tender to buy as much as 3,000 tonnes of soy oil. No tenders are scheduled for soybeans.