Longs may be covering positions ahead of today’s WASDE report. The monthly USDA Supply/Demand (WASDE) report is due for release at noon EST today and, as usual, traders are wary of its potential price impact. Short position holders seemed to cover positions Sunday night, whereas last night’s losses suggest bulls are now taking their turn. Little substantive corn news emerged overnight. March corn declined 1.5 cents to $3.8759/bushel Monday night, while July lost 2.0 to $4.0475.

The soy complex traded mostly lower overnight. Talk of large South American production may once again have weighed on the soy complex last night. Traders may also have been reacting to the concurrent drop in crude oil and Asian palm prices. Long liquidation probably played a factor as well, with the WASDE report looming at midsession. March soybean futures slid 2.25 cents to $9.7625/bushel early Tuesday morning, and March soyoil fell 0.26 cents to 31.75 cents/pound, while March meal sagged $1.0 to $328.6/ton.

The wheat markets fell despite supportive news. As was the case last week, numerous wheat tenders were discussed overnight. The most pertinent example was news of a 360,000-tonne preferential U.S. tender from Morocco. Conversely, Australian officials reportedly boosted that country’s just-completed harvest by 400,000 tonnes, which may be a big reason wheat futures turned decidedly lower overnight. March CBOT wheat dropped 4.25 cents to $5.255/bushel in early Tuesday action, while March KC wheat sank 5.0 to $5.585/bushel, and March MWE wheat skidded 3.25 to $5.7275.

Cash strength continued supporting cattle futures. Wholesale news seemed rather bearish for the short-term cattle outlook again Monday, but the cash strength exhibited late last week clearly spurred fresh optimism. Ultimately, that firmness made the discounts already built into nearby futures look excessive, so traders apparently bought again yesterday. GLOBEX quotes continued rising despite late beef weakness, which suggests a strong Tuesday morning opening. April live cattle futures closed 2.62 cents higher at 153.65 cents/pound Monday afternoon, while August cattle jumped 1.65 cents to 144.77 cents/pound. Meanwhile, March feeder cattle futures spiked 4.17 cents to 203.62 cents/pound and May feeders soared 3.55 to 203.22.

Hogs performed poorly once again Monday. CME traders seemed to anticipate a reversal in spot hog and pork markets last Friday, since the Chicago market rebounded strongly from multi-year lows. Cash and wholesale quotes remained weak into the weekend, but traders aren’t confident about a rebound at this point. Noon pork prices rose, which probably limited deferred futures losses. Firmness on the afternoon reports may bode well for today’s opening. April hog futures plunged 2.52 cents to 66.75 cents/pound at their Monday settlement, while June hogs dove 1.47 to 79.57.

Cotton seems set to rally into today’s USDA report. Industry analysts think today’s WASDE report will hold a bullish increase in 2014/15 U.S. cotton exports and a cut in ending stocks. The market also reacted to a sizeable drop in certificated stocks from recent levels. Moreover, the USDA attaché in India cut that country’s cotton export forecast. Thus, persistent overnight gains weren’t terribly surprising. March cotton futures rallied 0.33 cents to 62.63 cents/pound shortly after sunrise Tuesday, while the July contract edged up 0.04 to 63.24.