Corn futures benefited from bean gains Wednesday night. The soybean complex sustained its Wednesday surge overnight, thereby offering spillover support for corn and wheat futures. The fact that nearby corn futures were approaching technically oversold territory probably opened for bulls as well. July corn rose 2.75 cents to $4.7725/bushel in early Thursday trading, while December edged up 1.5 cents to $4.7325.

Old crop tightness sparked continued soy buying. The soy complex posted across the board gains overnight as traders refocused upon the tightness of the old crop situation. They also seemed to take recent weather/planting developments as being less than conducive to a large fall crop, so deferred futures matched nearby gains. July soybeans jumped 18.25 cents to $15.235/bushel early Thursday morning, while July soyoil climbed 0.45 cents to 40.92 cents/pound, and July soymeal surged $4.7 to $502.8/ton.

The wheat markets also gathered spillover support. Improving moisture conditions in the Winter Wheat Belt apparently continued weighing on the Kansas City market overnight, but concurrent soybean gains rather clearly offered support for wheat futures as well. News that Iraq had bought a big tranche of Russian grain probably encouraged bulls. July CBOT wheat futures gained 0.75 cent to $6.65/bushel shortly after dawn Thursday, while July KCBT wheat futures inched 0.5 cent lower to $7.61, and July MWE futures added 0.25 cent to $7.39.

Beef strength is still supporting cattle futures. After fluctuating rather widely Wednesday, CME live cattle futures closed lower, thereby seeming to reflect expectations for seasonal cash market weakness. Nevertheless, wholesale beef prices rose again yesterday, which will very likely encourage producers to resist weak packer bids. June cattle crept up 0.05 cents to 138.32 cents/pound in early Thursday action, while December rallied 0.20 to 146.10. Meanwhile, August feeder cattle advanced 0.22 to 196.75 cents/pound, and October gained 0.12 cents to 197.55.

Wednesday’s cash and wholesale news undercut hog futures last night. CME lean hog futures rallied in apparent anticipation of larger seasonal gains yesterday. However, late-afternoon reports indicated the cash and wholesale markets had reversed a substantial portion of Wednesday’s gains, which very likely translated into overnight CME weakness. June hog futures dipped 0.57 cents to 119.35 cents/pound as Thursday dawned over Chicago, while December stabilized at 95.30.

Cotton traders reportedly expect a strong result on the Export Sales report. The cotton market is trying to avoid a follow-through breakdown in the wake of its recent drop below 90 cents/pound (basis July futures). ICE values seemed to stabilize Wednesday, then rose modestly overnight; wire service sources cited anticipation of a strong result on this morning’s USDA Export Sales report. July cotton bounced 0.40 cents to 89.69 cents/pound soon after sunrise (EDT) Thursday, while December cotton moved up 0.27 to 82.15.