March wheat was down 3 1/2 cents overnight. Outside markets are mixed. Talk of the short-term overbought condition of the grain markets and ideas that Australia weather will allow better harvest ahead helped to spark some of the selling overnight. A general concern for food security and fears of food inflation appear to have helped boost wheat demand, and the tender wire appears to be getting a little more active. March wheat closed sharply higher on the session yesterday. Ideas that fund traders are focusing on grains and other agricultural markets into 2011 helped to support. News of better export demand for US wheat along with a sharply lower US dollar helped support the market early in the session. Egypt bought 180,000 tonnes of soft wheat from Argentina and the US with 60,000 tonnes coming from the US. They also cancelled a tender for hard wheat. Dry weather in the US plains has added to the positive tone but there is some scattered rains and snow expected for the plains for late this week. The snow (2-6 inches) could help protect wheat from winterkill with a cold snap expected for the weekend. A freeze and thaw pattern, however, is seen as a negative for crop conditions. Iraq is tendering to buy 100,000 tonnes and Turkey is tendering to buy 300,000 tonnes for January-February delivery. Even the move from sharply lower to higher on the day for the US dollar failed to pressure the market with March KC wheat posting a new contract high but Chicago wheat gained on KC into the close. July Chicago wheat managed to take out the November highs and move to the highest level since September of 2008. India wheat plantings this year reached 26.4 million hectares, up 4.3% from last year.

Bron: CME