Traders seemingly think Wednesday’s grain losses were overdone. Corn and wheat futures tumbled yesterday in apparent response to forecasts for drier weather next week, with the yellow grain drop putting the  market at its lowest levels since last October. Weather models seem to be putting a bit more rain into the forecast and the U.S. dollar dipped overnight, which may also help explain the Wednesday night bounce. July corn futures rose 1.75 cents to $3.5125/bushel early Thursday morning, while December added 1.5 to $3.6825  

Veg-oil market gains seem to be affecting the soy complex. Persistent concern about the Argentine labor situation and that country’s ability to ship product probably provided underlying support for the soy complex overnight, but developments in the vegetable oil markets may also being moving soybeans and meal. That is, Asian palm quotes reached two-week highs, thereby seeming to boost soyoil and beans. Conversely, soymeal gave back a significant portion of yesterday’s big rally. July soybean futures inched up 1.25 cents to $9.2825/bushel Wednesday night, while July soyoil climbed 0.31 cents to 32.04 cents/pound, and July meal skidded $2.1 to $306.0/ton.  

Wheat markets posted modest overnight recoveries. Forecasts for early-June dryness in the southern Plains and predicted increases in Russian production apparently sent wheat futures tumbling yesterday, although bulls could take some comfort in the sizeable rebound from midsession lows. The weather models seemingly indicated more rain in the second week of June, which may have encouraged short covering last night. July CBOT wheat futures bounced 3.0 cents to $4.9075/bushel shortly after sunrise Thursday, while July KC wheat edged up 0.5 cent to $5.125/bushel, and July MWE wheat gained 1.5 to $5.4725.  

Firming beef prices sparked bullish cattle market interest Wednesday. Wholesale beef prices proved surprisingly strong Tuesday, thereby giving rise to ideas that discounts already built into summer futures were too large. The Chicago market continued rallying despite mixed midday beef quotes. Late afternoon beef strength suggests a firm opening today. June live cattle futures advanced 0.67 to 152.47 cents/pound in late Wednesday trading, while August cattle surged 0.80 to 151.22. Meanwhile, August feeder cattle futures soared 1.82 cents to 221.42 cents/pound, and November feeders leapt 1.20 to 217.92.   

Spot market firmness also boosted CME hogs. Hog and pork traders have been anticipating seasonal price weakness through early June, but late-Tuesday spot strength boosted prices on Wednesday’s opening.  Midday pork weakness limited pit session gains, but generally bullish afternoon news seemingly makes for another strong opening this morning. June hog futures vaulted 0.60 cents to 83.77 cents/pound at their Wednesday settlement, while December sank 0.27 to 69.80.      

Cotton bounced from technical support. ICE traders are probably debating the potential for Texas cotton production prospects amidst current swampy conditions. Will the excess moisture cut plantings area or  increase it. Will likely planting delays affect the size of the fall harvest. Recent price losses have indicated bearish industry ideas, but the most-active July and December contracts bounced significantly from the 63.00 and 64.00 cent levels, respectively, last night, thereby suggesting emerging support. July cotton rallied 0.39 cents to 63.44 cents/pound in early Thursday trading, while December futures rebounded 0.34 to 64.37.