Corn futures dipped Friday morning. Although domestic data on Thursday’s Export Sales and WASDE reports seemed supportive, traders reportedly focused this morning upon the USDA’s increase in its global carryout forecast yesterday. The soybean market’s inability to rise on good export news, as well as current U.S. dollar strength, may also be weighing on yellow grain prices. May corn futures sank 3.25 cents to $3.7475/bushel late Friday morning, while December lost 3.25 to $4.025.

The soy complex is proving surprisingly weak. Soybean and product futures traded narrowly mixed Thursday night, then suffered modest declines this morning. Given the bullish export news reported this morning, that was not expected. The ongoing South American harvest, on top of the bearish price effects of the U.S. dollar surge, is probably weighing on prices. Pragmatic traders probably view this action quite skeptically. May soybean futures slid 7.75 cents to $9.4575/bushel as the lunch hour loomed Friday, while May soyoil dipped 0.18 cents to 30.66 cents/pound, and May meal skidded $3.2 to $308.9/ton.

The wheat markets couldn’t sustain midmorning gains. Despite the general bearishness of the global wheat situation and the elevated nature of U.S. grain prices (a situation being exacerbated by fresh U.S. dollar gains), wheat futures posted sizeable gains Friday morning. Wire service reports highlighted persistent southern Plains dryness and reports of freezing Thursday night temperatures for the rally. However, futures set back toward unchanged by lunchtime. May CBOT wheat inched up 0.75 cents to $5.195/bushel around midsession Friday, while May KC wheat lifted 2.0 cents to $5.535/bushel, and May MWE wheat advanced 3.75 to $5.7775.

Bearish cash expectations sent cattle futures tumbling. Despite recent spot market gains, the cattle/beef industry clearly expects a decisive seasonal downturn in the near future. Thus, talk of a potential cash market drop later today sparked strong CME selling. On the other hand, big discounts already built into CME futures could limit losses. June cattle futures plunged 2.17 cents to 149.40 cents/pound in late Friday morning action, while August cattle dove 1.62 to 147.05 cents/pound. Meanwhile, May feeder cattle futures crashed 3.35 cents to 210.35 cents/pound, and August feeders plummeted 3.20 to 211.82.

Hog futures are challenging technical resistance. In contrast to their counterparts in the cattle market, swine traders expect a sizeable seasonal rally through the second quarter. Thus, futures responded well to talk of cash strength this morning. Conversely, wholesale slippage likely limited gains, as did technical resistance around intermediate-term moving averages. June hog futures rallied 1.12 cents to 77.92 cents/pound shortly before lunchtime Friday, while December gained 0.15 to 67.75.