Corn followed wheat higher again Thursday night. Although current U.S. weather seems very favorable to the corn production outlook, the yellow grain market continued rallying in concert with wheat overnight. Recent price losses, which have been compounded by concurrent dollar losses may be improving grain demand prospects. Ultimately, traders seem to be questioning the general bearish environment in place for months. July corn futures climbed 2.5 cents to $3.705/bushel as Friday dawned over Chicago, while December gained 2.75 to $3.875.   
    
The soy complex is again responding to competing influences. As one might expect, soybean futures rallied in concert with the grain markets overnight, with soymeal tagging along. One has to suspect short-covering in those markets as well, although those remain very well supplied in the wake of the South American harvest. In contrast, soyoil quotes dipped in early Friday action in apparent reaction to crude and palm oil losses. July soybean futures lifted 2.75 cents to $9.5975/bushel early Friday morning, while July soyoil slid 0.06 cents to 33.28 cents/pound, and July meal bounced $1.6 to $303.8/ton.   
    
Weather concerns are apparently powering the wheat advance. The current storm pattern implies excessive rainfall may dominate the Winter Wheat Belt in the short-term, thereby reducing productive potential.  Traders may also be reacting to recent El Nino news, since that may bode ill for Australian production. Thursday’s surge was exaggerated by active short covering, with futures funds remaining hugely short. July CBOT wheat futures edged up 1.75 cents to $5.16/bushel shortly after sunrise Friday, while July KC wheat rallied 2.75 cents to $5.46/bushel, and July MWE wheat rose 3.0 to $5.695.   
    
Spot market strength spurred CME cattle gains Thursday. Ongoing beef gains indicate persistently robust consumer demand and seemingly presaged Thursday’s increased starting packer bids. Technicians apparently jumped on the bullish bandwagon as well. A bullish follow-through seems likely today. June live cattle futures jumped 1.82 cents to 153.80 cents/pound in late Thursday action, while August cattle vaulted 1.42 to  152.07 Meanwhile, August feeder cattle futures leapt 1.32 cents to 218.95 cents/pound, and November feeders soared 1.62 to 216.30.       
 
CME hogs seem caught between bulls and bears. Concerns about excessive pork supplies and weak seasonal demand after Memorial Day are seemingly weighing on hog futures this week. Recent cash and wholesale strength and the relative cheapness of pork versus beef and chicken apparently offered vigorous support. However, midweek spot slippage has seemingly given the bears the upper hand for now. June hog futures closed 0.82 cents lower at 83.95 cents/pound Thursday, while December sank 0.37 to 69.67.       
 
Cotton futures topped tough chart resistance. The weekly Export Sales data provided little cotton market direction, since the latest figure easily topped last week’s result, but fell 27% short of the four-week average. A private forecast for reduced spring cotton plantings seemed supportive, but prices didn’t react quickly. Still, it may have played a role in the late surge, although the simple fact that the July contract decisively topped its 10-day moving average seemed to trigger the late move. July cotton rallied 0.76 cents to 66.53 as Thursday’s New York session ended, while December futures ran up 0.71 to 66.50.