MARKET NEWS

(Bloomberg) -- Crop futures were on track for a weekly decline as weather outlooks called for more rain in the US Midwest, boosting yield prospects at a time when investors were already bearish.

A slow-moving cold front in the region Friday helped to bring cooler temperatures, according to the US Department of Agriculture’s daily outlook. “Heavy showers and thunderstorms along the front are maintaining favorable moisture supplies for corn and soybeans in the central Corn Belt,” the agency said.

Heat earlier this week was linked to “corn sweat,” when plants release moisture in the atmosphere that contribute to humidity. Over half the crop is throwing threads of silk as part of the yield-determining pollination process, while corn’s national ratings of 74% “good or excellent” are the best for this time of year since 2016.

The favorable weather is keeping some investors on the sidelines, with light trading volumes on the Chicago exchange.

“Limited volume tells us that the market is comfortable with the current situation,” said StoneX risk management consultant Matt Campbell, adding that supplies are adequate and there’s no need to change prices.

Still, some buyers were taking advantage — the USDA reported daily export sales of both corn and soybeans to Mexico.

In other markets, MIAX spring wheat futures were little changed one day after an annual crop tour found yield potential below USDA’s estimate in North Dakota, the biggest grower.