December wheat was up 3 1/4 cents overnight. Outside market forces are positive this morning. The market saw selling pressures yesterday due to weaker than expected demand and some ideas that weather looks to be improving for winter wheat areas in the next few weeks. December wheat opened higher yesterday but closed near the lows for the second session in a row. Weak news for export demand and an improving weather outlook were seen as factors which sparked increased selling pressure. A weak US dollar and news of declining crop conditions for the winter wheat crop helped support the higher opening, but sellers were active early and the market quickly retreated to lower on the day before closing sharply lower and near the lows of a 19 3/4 cent range. The jump in gold and equity markets helped support the market early and these same factors seem to have helped support the bounce overnight. News that Egypt did not buy US wheat at their weekly tender combined with talk of better rain chances for the winter wheat growing regions in the longer-term weather forecasts were seen as factors which helped spark the selling. Egypt bought 230,000 tonnes of wheat from Argentina, Australia and France and none from the US. This was seen as a negative development. Traders expected to see an improving winter wheat crop this week, but the weekly update showed crops rated in good to excellent condition at just 46% as compared to 47% last week and 64% last year. Traders see increasing chances of rains for the delta in the short term and into the southern Midwest into next week. There are better chances of rain for the southern plains in the 6-10 day forecast, but some traders see the rain missing the dry western areas of Kansas and eastern Colorado.

Bron: CME