The crop markets are looking forward to the USDA report. Corn futures dipped Thursday night, which probably reflected trader balancing of positions in the wake of yesterday’s rally and ahead of the late-morning release of the monthly USDA WASDE report. It could greatly influence prices during the days ahead. July corn slipped 1.5 cents to $5.15/bushel early Friday morning, while December declined 1.25 cents to $5.1025.

Soybeans seemed to retain a bit of Thursday’s upward momentum. Strong export news sparked a big surge in the soy complex yesterday and a sizeable contingent of traders expects today’s WASDE report to indicate persistent old-crop tightness. They seem somewhat less optimistic about the meal outlook. Beans led oil higher overnight, while meal dipped. July soybeans gained 1.75 cents to $14.7125/bushel just after dawn Friday, and July soyoil surged 0.29 cents to 41.41 cents/pound, but July soymeal lost $1.8 to $478.9/ton.

Long liquidation seemed to enter the wheat markets Thursday night. The tense Black Sea situation and significant U.S. weather problems have powered wheat prices substantially higher lately. Given the size of those gains, it isn’t terribly surprising that traders seemed to be taking profits on longs last night, since today’s WASDE report has the great potential to move markets. July CBOT wheat futures fell 7.0 cents to $7.2825/bushel in early Friday action, while July KCBT wheat futures dove 10.5 cents to $8.32, and July MWE futures tumbled 7.0 to $7.9875.

Late beef losses seemingly depressed cattle futures. Talk of cash firmness appeared to support cattle futures yesterday, with the discounted Chicago market proving open to suspicions that traders have been overly pessimistic about the summer outlook. However, the afternoon report stated wholesale prices significantly lower, thereby spurring fresh sales overnight. June cattle dropped 0.27 cents to 137.65 cents/pound Thursday night, while December skidded 0.07 cents to 144.20. Meanwhile, August feeder cattle edged up 0.07 cents to 190.35 cents/pound, whereas October sagged 0.07 cents to 190.95.

Steady wholesale prices sparked hog buying Thursday night. Hog and pork prices have come under considerable pressure lately, which has translated into sizeable CME losses as well. Indeed, the simple fact that pork prices stabilized yesterday appeared to spur renewed Chicago buying last night. June hog futures climbed 0.32 cents to 120.47 cents/pound early Friday morning, while December stumbled 0.07 cents to 94.30.

Cotton also sustained Thursday’s export-driven advance. Thursday’s weekly USDA Export Sales report stated last week’s cotton total well above recent levels, thereby sparking a big ICE rebound. It gave back a major portion of that bounce, but resumed the rise again last night. As with the other crop markets, today’s WASDE report could greatly influence the fiber outlook. July cotton rallied 0.16 cents at 93.21 cents/pound shortly after sunrise Friday, while December cotton rose 0.16 to 83.67.