Grain prices are setting back prior to Monday’s big USDA reports. The USDA will publish its highly anticipated Grain Stocks and Acreage reports at noon EDT today, which could hugely impact the markets. Traders seem to be expecting a bearish corn result, since futures slipped in early-morning action. The decline may also reflect favorable early-July weather forecasts. July corn slid 3.0 cents to $4.40/bushel Sunday night, while December lost 5.0 to $4.4225.

The soy complex started the week in mixed fashion. Traders in the soybean and meal pits are apparently somewhat more optimistic about the likely result of today’s reports, since the old-crop situation clearly remains tight. On the other hand, persistent palm weakness is weighing upon oil prices once again. July soybeans edged up 0.5 cent to $14.325/bushel as Monday dawned over Chicago, while July soyoil stumbled 0.07 cents to 39.91 cents/pound, and July soymeal rose $1.2 to $471.0/ton.

The wheat markets moved mostly lower Sunday night. Current weather looks generally favorable for wheat, with reduced rainfall likely being conducive to the winter wheat harvest and early-season spring wheat growth. Traders are apparently lightening up on long positions prior to the release of important USDA reports. July CBOT wheat futures sagged 3.75 cents to $5.815/bushel early Monday morning, while July KCBT wheat rallied 3.75 cents to $7.2975, and September MWE futures sank 3.5 to $6.925.

Cattle traders seemingly ended last week thinking cash prices have topped. Cattle futures proved surprisingly weak Friday despite another big surge in cash prices. Given late wholesale weakness and the time of the year, traders may have interpreted Friday’s cash action as likely marking a short-term price peak. August cattle dove 1.63 cents to 151.12 cents/pound at Friday’s settlement, while December dropped 1.17 to 154.35. Meanwhile, August feeder cattle fell 0.80 cents to 214.32 cents/pound, and October feeders slumped 0.80 to 216.27.

The hog market ended last Friday on a mixed note ahead of the Hogs & Pigs report. After rallying strongly through mid-June, CME lean hog futures turned lower last Wednesday. Signs of weakness at the cash and wholesale levels played a role in the setback, but traders were almost surely adjusting their holdings prior to Friday’s highly anticipated quarterly USDA Hogs & Pigs report (at 2:00 PM CDT). The data were quite mixed, but ultimately looked bullish for fall futures. August hog futures surged 1.02 cents to 129.82 cents/pound as Friday’s CME trading ended, while December slid 0.05 cents to 95.60.