The WASDE report weighed on corn futures. Crop market traders seemed to be liquidating long positions ahead of the late-morning release of the monthly USDA Supply/Demand (WASDE) report, since futures declined modestly at that time. That didn’t change in the wake of the report, since a sizeable reduction in U.S. supplies was more than offset by a big increase in the forecast global carryout. March corn slipped 0.25 cent to $3.91/bushel late Tuesday morning, while July skidded 0.75 to $4.06.

The soy complex partially overcame early weakness around midsession Tuesday. Talk of large South American production and weak crude and palm oil markets apparently undercut the soybean and product markets Monday night and Tuesday morning. The WASDE report supported beans and meal, since bean usage was boosted and stocks were cut. Increased oil stocks are weighing on that market. March soybean futures rallied 1.5 cents to $9.80/bushel in post-report trading, while March soyoil fell 0.47 cents to 31.54 cents/pound, while March meal rose $1.8 to $331.4/ton.

The wheat markets reacted poorly to the latest news. Supportive demand news seemingly did little to support the wheat markets overnight, which may have partially reflected an upward revision to Australian production. Prices remained rather weak through the release of the WASDE report, then moved even lower in response to comparatively high estimates for both U.S. and global stockpiles. March CBOT wheat dipped 4.75 cents to $5.25/bushel in late-Tuesday morning action, while March KC wheat sagged 5.5 to $5.58/bushel, and March MWE wheat dropped 2.75 to $5.7325.

Cattle futures couldn’t sustain early Tuesday gains. CME cattle prices continued rising early Tuesday morning as Chicago traders looked at the difference between nearby futures and last week’s cash quotes. However, bulls couldn’t sustain the strength, which may have reflected fresh pessimism about short-term cash and wholesale prospects, particularly with the West Coast port congestion remaining a major issue. April live cattle futures slumped 0.52 cents to 153.12 cents/pound around midsession Tuesday, while August cattle dove 0.97 cents to 143.80 cents/pound. Meanwhile, March feeder cattle futures plunged 1.82 cents to 201.80 cents/pound and May feeders tumbled 1.50 to 201.72.

Midsession data undercut CME hogs. Monday’s big Chicago losses very likely reflected fresh pessimism about short-term hog and pork prospects. The afternoon reports indicated relatively small cash losses and a rebound in pork prices, which spurred early Tuesday gains. Unfortunately for farmers and bullish interests, the midday quotes were not at all helpful. April hog futures stumbled 0.47 cents to 66.27 cents/pound as the lunch hour loomed Tuesday, while June hogs edged 0.12 lower to 79.45.

USDA news spurred mixed action in cotton futures. Anticipation of an increase in the USDA cotton export forecast and a commensurate drop in the projected 2014/15 carryout boosted the fiber market in early Tuesday trading. However, that changed somewhat after the WASDE report was released, since the USDA slightly boosted its production estimate, thereby putting ending stocks modestly above expectations. March cotton futures gained 0.26 cents to 62.56 cents/pound shortly after noon (EST) Tuesday, while the July contract sagged 0.15 to 63.05.