Corn futures set back Tuesday night. The corn market displayed surprising strength Tuesday, which probably reflected the U.S. dollar’s concurrent drop, as well as bullish leadership from the soy complex. However, modest overnight gains in both the soy and wheat sectors seemingly did little to boost the yellow grain. That suggests generally negative global conditions and the rebounding dollar are again depressing sentiment. May corn futures sank 2.25 cents to 3.7125/bushel shortly after dawn Wednesday, while December sagged 2.25 to $3.9675.   
Argentine reports seemed to encourage soy traders. Talk of improved demand apparently spurred buying in the soy complex Tuesday, although the concurrent U.S. dollar drop very likely encouraged soy complex bulls as
well. CBOT prices continued rising overnight, with wire service reports citing less than ideal Argentine conditions and a slow start to their harvest. Outside markets again support soyoil futures. May soybean futures
rose 4.75 cents to $9.65/bushel Tuesday night, while May soyoil ran up 0.16 cents to 31.46 cents/pound, and May meal crept $1.2 higher to $314.8/ton.   
German news may be supporting the wheat markets. Tuesday was not a happy day for wheat bulls, since prices followed through upon Monday’s big losses. However, prices rebounded overnight despite the upward reversal posted by the U.S. dollar. We suspect a forecast for a significant drop in Germany’s winter wheat crop sparked modest buying at the various exchanges, although Russian statements about their wheat export tariff may also have encouraged bulls. May CBOT wheat rallied 6.25 cents to $5.0325/bushel early Wednesday morning, while May KC wheat rose 4.5 cents to $5.2625/bushel, and May MWE wheat edged up 1.0 to $5.53.   
Cattle futures rebounded strongly from technical support Tuesday. After cattle futures dove sharply in anticipation of cash losses last Friday, they posted a modest Monday rebound after an opening test of 40-day moving average support. That seemingly set the stage for Tuesday’s resurgence, which probably reflected the large cash premium and midday beef strength. Firm GLOBEX action suggests early Wednesday gains as well. June cattle futures leapt 1.47 cents to 150.42 cents/pound at Tuesday’s Chicago close, while August cattle jumped 1.15 to 147.97 cents/pound. Meanwhile, May feeder cattle futures climbed 0.75 cents to 210.80 cents/pound, and August feeders advanced 0.95 to 212.75.    
Spot market slippage seemingly undercut CME hogs. Although the cash hog markets exhibited considerable strength late last week and again Monday, pork cutouts had moved sideways to lower. Both cash and wholesale prices were stated significantly lower at noon yesterday, which probably explains the Chicago hog market’s inability to build upon recent gains. On the other hand, late afternoon quotes reversed early losses, which may bode well for today’s opening. June hog futures ended Tuesday having declined 0.30 cents to 78.47 cents/pound, while December rebounded 0.70 to 68.80.    
Cotton futures are starting Wednesday on a mixed note. The cotton market proved surprisingly weak Tuesday, with little obvious news powering the drop. We harbor suspicions that industry insiders saw evidence of poor export sales. Prices proved mixed overnight, which may have simply marked a reaction to the competing influences exerted by gains in both equity index futures and the value of the dollar. May cotton inched up 0.04 cents to 64.73 cents/pound in early Wednesday trading, while December futures slid 0.13 to 65.14.