Grain futures stabilized prior to the WASDE report release. The crop markets continued last week’s late slide Sunday night as the industry squared positions ahead of the monthly USDA WASDE report that came out late this morning. Corn futures firmed just before the report, then lost ground again in response to the data. May corn tumbled 6.0 cents to $4.83/bushel late Monday morning, while December lost 4.75 to $4.80.

The soy complex reacted poorly to the WASDE report. After proving quite strong last week, the soy complex came under downward pressure prior to the midsession release of the WASDE report. Beans and meal then accelerated downward in response to the news, while oil futures gave up early gains. Ultimately, the USDA cut its forecast of the Brazilian soybean crop and domestic carryout predictions less than was generally expected. May soybeans dove 25.75 cents to $14.32/bushel in late Monday morning activity, while May soyoil sank 0.22 cents to 44.10 cents/pound, and May soymeal fell $7.7 to $450.1/ton.

The wheat markets tried to stabilize in the wake of the WASDE data. Despite likely underlying support stemming from the uncertain Black Sea situation, wheat futures accompanied the other crop markets lower Sunday night. Futures actually turned mixed by late morning, but came under fresh pressure when the WASDE report was released. May CBOT wheat futures skidded 3.0 cents to $6.51/bushel just before lunchtime Monday, while May KCBT wheat futures dipped 1.5 cents to $7.1975, and May MWE futures were flat at $7.05.

Mixed cash expectations seemed to confuse CME cattle action Monday morning. Although wholesale beef prices ended last week strongly are probably expected to keep rising this week, cash cattle prices declined last week. Many traders probably anticipate more of the same this week, but that’s not a given. Mixed Monday morning futures trading illustrated the confusion about short-term prospects. April cattle futures were flat at 143.25 cents/pound around midsession Monday, while August rallied 0.40 cents to 134.25. Meanwhile, April feeder cattle climbed 1.37 cents to 175.02 cents/pound, and August gained 1.32 to 177.40.

Hog futures surged again to start the week. Last Friday’s preliminary slaughter total for the week confirmed earlier talk of sharply reduced hog slaughter and added weight to expectations for continued reductions. That news, along with surging cash and wholesale prices boosted futures again Monday morning. April hogs spiked 2.72 cents to 115.72 cents/pound by late morning, while June soared 3.00 to 123.50.