Corn resumed its pattern of old crop strength and new crop losses Wednesday night. The tight old crop situation again boosted July corn futures, whereas favorable Corn Belt conditions depressed the deferred contracts. The overnight combination of equity index gains and the slipping dollar may have contributed to the nearby advance. July corn futures rose 1.0 cent to $6.655/bushel early Thursday morning, while December sagged 2.5 cent to $5.415.

Soybean futures rallied in concert with corn Thursday morning. The soy complex was under pressure Wednesday night, with traders talking about beneficial weather across the Corn Belt as well as a fresh bout of weakness in the vegetable oil markets. Nevertheless, the Chicago markets had turned higher in early Thursday trading. That probably reflected strength spilling over from the corn pit. Bearish traders may also have been exiting short positions ahead of the Friday morning USDA reports. July soybean futures climbed 6.5 cents to $15.4075/bushel as the sun rose over Chicago Thursday, while July soyoil gained 0.15 cents to 46.78 cents/pound and July soymeal advanced $4.0 higher to $467.3/ton.

Cattle futures proved surprisingly strong again in overnight trading. Persistent wholesale losses certainly seem to point the market downward. One might argue that the ongoing equity index rebound, along with the implication of economic growth, is encouraging bulls. Others may simply think the seasonal cash market decline has run its course. Whatever the cause, the late cattle futures performance has been rather impressive. August cattle rallied 0.47 cents to 122.65 cents/pound in early Thursday electronic trading, while December moved up 0.42 cents at 127.80. Meanwhile, August feeder futures surged 0.67 cents to 149.60 cents/pound, and November ascended 0.45 cents to 154.22.

Pork strength probably boosted hog futures in early Thursday trading. CME traders have rather obviously been thinking seasonal weakness will weigh heavily upon the hog and pork complex in the coming weeks. However, the wholesale market has refused to cooperate with bears; pork cutout rose significantly again Wednesday afternoon, which very likely encouraged futures buying last night. July hog futures jumped 0.65 cents to 100.60 cents/pound as pit trading commenced Thursday, while the December contract rose 0.37 to 82.97.

Cotton futures tired to follow the equity and grain markets higher Thursday morning. The rise in equity index values implies improved demand for the white fiber down the road, especially if the U.S. and global economies continue growing. Buying may also have spilled over from the grain and soy markets as well, with numerous cotton traders likely exiting positions ahead of the Friday morning USDA Acreage report. Nevertheless, futures were mixed as trading accelerated Thursday morning. October cotton edged down 0.02 cents to 85.27 cents/pound in early Thursday trading, while December added 0.13 cents to 83.83.