Corn futures were higher on Thursday. Spillover strength from soybeans, positioning ahead of the Supply/Demand report and strong weekly export sales pushed prices higher. The average trade estimate for USDA's 2009/2010 carryover estimate is 1.567 billion bushels, which would be up 477 million from June due mostly to the increased acreage projections. Further gains were limited by nearly ideal weather forecasts for the crop over the next week to ten days. September ended 4 1/4 cents higher at $3.29 1/2 and December ended 5 3/4 cents higher at $3.40.



Soybean futures were strongly higher on Thursday. Short-covering helped push futures higher following the strong decline in prices earlier this week as traders gear up for the Supply/Demand report. Strong weekly export sales of both old and new-crop soybeans were supportive as China continues to be a big buyer. The market rallied despite generally favorable growing conditions and weather forecasts for the crop. August closed 32 1/2 cents higher at $10.47 1/2 and November was 24 cents higher at $9.16.



Wheat futures turned higher on Thursday. The market was able to bounce from technically oversold conditions amid positioning ahead of the Supply/Demand and Wheat Production reports. The average trade estimate for all-wheat production is 2.106 billion bushels, down from 2.5 billion last year. Weekly export sales reported this morning were supportive as sales of 21.5 million bushels were above trade expectations. CBOT September ended 5 cents higher at $5.22 1/4, KCBT September was 5 cents higher at $5.51 1/2 and MGE September closed 3 cents higher at $6.07 1/2.



Cattle futures closed higher on Thursday. Spillover support from the lean hog pit and the unexpected decline in jobless claims last week provided support. However, gains were limited by boxed beef prices slipping at midday and some reports of lower cash trade. Light trade developed at $129-$130 dressed, down $1-$2 from last week. August was 13 cents higher at $83.48 and October ended 50 cents higher at $88.83.



Lean hog futures were sharply higher on Thursday. Fund buying and short-covering from recent weakness pushed prices up strongly, with the August contract trading up the $3 limit at times. Spillover strength in other commodities and equities along with weakness in the dollar helped encourage the rally. Pork prices have been hovering around 6-year lows, but did bounce $1.31 on Wednesday. August ended $2.68 higher at $63.70 and October was $2.23 higher at $58.98.