Selling in commodities continues into mid-week.

Technical selling developed overnight across the grain board from corn and soybeans making new six-month highs early Tuesday morning and closing near the session's lows. This is prompting profit-taking, technical selling with the end of the tax year three days away. Significant gains seen in commodities over the past two weeks are prompting traders to lighten up positions creating a midweek slump. Renewed ownership enthusiasm should return Thursday mid-morning, with Friday closes typically near the best levels or new highs for the week.

Yesterday Brazilian cash bids for corn and soybeans rose amid the declining CBOT grain prices. Tightening cash supplies and likely rain delays in northern Brazil's soybean harvest placed the bid under cash corn/soybeans.

Ongoing South American weather concerns are prevalent, but in the short term, there are light rain showers forecasted for Parana and northern MGDS this weekend. Potential rainfall is in the .5-1.50″ category with the dryer trend returning in the 11-15 day. For the next two weeks, Northern Brazil is anticipating accumulating rains of 4.00-10.00″, hampering the soybean harvest, which wants to get underway into mid-January. Soybean diseases on the rise from Goias to Bahia.

While southern Brazil has some rain forecasts for this weekend, most of RGDS, Caterina, and all of Argentina will remain in a mostly dry trend with warming temperatures in the 11-15 day period. As a result, price breaks in the grain trade into Wednesday-Thursday morning should be viewed as buying opportunities.

Egypt's GASC is tendering for February world wheat. French offers were the cheapest at $331.86/MT FOB. Ukrainian wheat was several dollars more expensive, with Russian/Romanian wheat offered a full $10/MT higher. Shipment is between February 15-March 3 with 10 results to later today.

Cattle trade yesterday closed firm with feeder cattle well over $1.00 higher. A steady-from outlook is offered with cash cattle trade quoted $2 higher at $140 in the Western Midwest. Light dress trade in Nebraska was quoted $3 higher at $220. A steady-higher trend holds for additional cash business this week. Box beef prices were also higher yesterday.