After apparently rallying in response to the weekly Export Sales report Thursday, corn futures set back modestly overnight. There was little news, although one can probably blame reports that significant Israeli and Taiwanese grain tenders had largely been sourced from South America for a portion of the loss. July corn slipped 0.5 cents to $6.615/bushel early Friday morning, while December slid 2.0 cents to $5.3275.

Soybean futures were mixed to weak Friday morning. The slide was not terribly surprising in the wake of the easing old crop situation this week. Moreover, the manner in which the July future reversed from its Thursday lows seemingly presaged a short-term decline. Improved new crop production prospects may have weighed upon deferred futures. July soybean futures fell 4.25 cents to $14.9525/bushel in early Friday action, while July soyoil was steady at 49.66 cents/pound, and July soybean meal edged $2.1 lower to $434.9/ton.

The weekly USDA Export Sales report proved quite supportive of wheat values Thursday, which may explain the futures gains seen overnight as well as those posted after its release. Otherwise, there was little substantive news concerning the golden grain markets overnight. July CBOT wheat futures rallied 3.75 cents to $7.07/bushel as the sun rose over Chicago Friday morning, while July KCBT wheat advanced 2.5 cents to $7.57, and July MGE futures inched up 1.75 cent to $8.15.

Cattle futures remained under pressure Thursday as reports of cash market weakness came into Chicago pit. Negative market psychology has clearly dominated events lately, as best illustrated by the fact that cattle values have declined at the same time choice cutout has routinely set record highs. Many probably think the slide has been overdone, which may be one reason futures rose slightly overnight. June cattle gained 0.45 cents to 119.57 cents/pound in Thursday night action, while December added 0.07 to 123.75. Meanwhile, August feeder cattle futures crept 0.02 cents upward to 142.67 cents/pound, as did November, to 148.20.

Hog futures seemingly suffered a relapse Thursday after spiking upward on Wednesday, but appeared ready to resume their spring advance in overnight trading. That is rather surprising since Thursday afternoon reports indicated the cash markets were mixed and wholesale prices had declined. Ultimately, traders are rather obviously expecting continued seasonal strength through at least mid-June. June hog futures surged 0.45 cents to 94.65 cents/pound in early Friday morning action, while the December contract climbed 0.40 cents to 79.80.

There was little news concerning the cotton market Thursday night, so the modest rise was not terribly surprising. That is, after July futures dropped 4.0 cents over the past three sessions, lots of traders will probably be looking to take exit positions before the long holiday weekend. July cotton futures bounced 0.25 cents to 82.03 cents/pound in early-morning trading Friday, while December fell 0.24 cents to 83.40.