March wheat was 4 3/4 cents higher overnight. The dollar made another 2-month high overnight. March wheat pushed to its highest level since November 16th overnight despite firmness in the dollar as too much rain in Australia and continued dryness in the US help to support. The March contract has traded mostly sideways in narrow ranges over the past 7 trading sessions, although it has managed to put in a series of higher lows in recent days. The latest Commitments of Traders report has been delayed until this afternoon due to the Thanksgiving Day holiday last week. The previous report showed trend-following funds continuing to add to their large net short position which stood at 46,577 contracts as of November 16th. This was the largest net short position held by the trend-following funds in any agricultural market as of that date. Last week’s export sales for wheat were solid, but they fell within the range of trade expectations. Net sales for all-wheat came in at 745,200 tonnes, all for the current marketing year. Soft red winter wheat sales jumped to 118,900 tonnes. Hard red spring sales came in at 235,200 tonnes. As of November 18th, cumulative wheat sales stand at 66.3% of the USDA forecast for 2010/2011 versus a 5 year average of 68.2%. Sales need to average 412,000 tonnes each week to reach the USDA forecast. Traders report that Jordan is tendering for 100,000 tonnes of optional origin wheat for delivery in February and March. Dry conditions remained in the NW corner of the soft red winter wheat belt over the past week with even drier conditions settling in across the hard red winter wheat belt on the Plains. Light showers are expected to move into the Plains from the west today, becoming heavier as they near the Mississippi. Conditions in Australia remain much the same as last week with dry to very dry conditions in the west having a negative effect on yields. Wet weather in eastern Australia is also having a negative effect, especially after recent heavy rains in the SE.

Bron: CME