Corn futures edged higher to start the week. Talk of poor growing conditions and a likely improvement in Chinese demand seemed to boost the corn and bean markets to start the week. Short covering prior to tomorrow’s big USDA reports probably supported prices as well. September corn closed 5.0 cents higher at $3.5675/bushel Monday, while December gained 4.75 at $3.6825.

The soy complex closed mostly lower Monday. Traders reportedly focused upon growing Chinese dryness and the potential for strong export demand in the short term. The weekly Export Inspections report seemingly confirmed the strong old-crop buying, which sent nearby bean and meal prices higher. A private forecast for record new-crop Brazilian production probably exaggerated pre-USDA report selling of deferred futures. September soybean futures tumbled 5.25 cents to $11.085/bushel as Monday’s pit session ended, while November futures tumbled 11.5 cents to $10.7325. September soyoil dropped 0.60 cents to 34.88 cents/pound, and September soymeal skidded $0.4 to $367.5/ton.

European news undercut the wheat markets. Wheat futures apparently suffered from diminished Black Sea tensions to start the week. Also, dryness across Western Europe may enable E.U. farmers to start their wheat harvest. Both factors encouraged futures sales, although the Export Inspections report seemed quite supportive of golden grain prices. September CBOT wheat settled down 2.75 cents to $5.465/bushel Monday afternoon, while September KC wheat slumped 5.5 cents to $6.2375/bushel, and September MWE wheat sagged 2.5 to $6.1625.

Monday’s cattle bounce seemed technical & pragmatic in nature. Cattle futures led the cash markets sharply lower late last week and the industry seems to expect much more of the same during the days ahead. However, CME futures rebounded later in the CME trading day, with wire service sourced citing short-covering and ideas that the market was oversold for the bounce. October live cattle futures rebounded 0.45 cents to 150.45 in late-Monday trading, while December futures surged 1.00 cent to 151.25 cents/pound. Meanwhile, September feeder futures leapt 2.70 cents to 217.42 cents/pound and November futures soared 2.62 to 215.22.

Hog futures also posted a mid-Monday comeback. Talk of cash market weakness seemed to spur fresh CME selling this morning. However, surprisingly firm wholesale quotes appeared to shift trader ideas and market momentum. October hog futures jumped 0.85 cents to 100.17 cents/pound in late-Monday trading, while December ran up 0.40 cents to 89.55.