The grain markets are rallying again. After struggling or moving lower yesterday, the crop markets turned upward overnight, with the grain markets continuing their advance this morning. Talk of excess rainfall in the U.S and potential dryness in Russia, Canada and Australia are boosting wheat, with corn following right behind. Good export news is boosting the yellow grain market. July corn futures rose 4.0 cents to $3.64/bushel around midsession Thursday, while December added 4.0 to $3.8125.

The soy complex couldn’t sustain Wednesday night gains. The soybean and meal markets seemed set to rebound from Wednesday’s big lows early this morning, but bulls proved unable to sustain the move. Oil also sagged despite the big crude oil rally. Strong U.S. production prospects, as well as huge South American supplies, are apparently handicapping bullish efforts. July soybean futures slid 2.75 cents to $9.385/bushel as the lunch hour loomed Thursday, while July soyoil sagged 0.02 cents to 32.18 cents/pound, and July meal edged $0.4 lower to $304.1/ton.

Wheat markets are reacting well to weather worries. The latest weather forecasts suggest winter wheat in the southern Plains faces continued rains, whereas traders are talking about dryness in Russia and Canada. The potential for an El Nino’ also raises the prospect of Australian drought. July CBOT wheat futures surged 12.25 cents to $5.2525/bushel in late Wednesday morning action, while July KC wheat jumped 16.75 cents to $5.6175/bushel, and July MWE wheat advanced 12.5 to $5.8075.

Cattle futures reacted well to country cash news. Bearish seasonal expectations have weighed upon cattle futures lately, but Great Plains prices proved surprisingly firm Wednesday afternoon. That news clearly sparked today’s strong opening and sustained morning strength. June live cattle futures leapt 1.02 cents to 152.37 cents/pound just before lunchtime Thursday, while August cattle vaulted 1.17 to 150.90. Meanwhile, August feeder cattle futures soared 1.37 cents to 218.07 cents/pound, and November feeders ran up 1.0 to 215.10.

Hog futures ended the day strongly. The livestock/meat industry also appears to be anticipating a seasonal decline in hog and pork prices, with talk of early cash weakness offsetting the latest rise in the CME index. The late-day surge in the summer contracts suggested renewed spot market strength, but late afternoon reports were mixed to lower. That suggests a weak Thursday morning opening. June hog futures ended Wednesday having advanced 0.40 cents to 82.55 cents/pound, while December gained 0.05 to 70.25.