March wheat was down 9 1/2 cents overnight. Outside markets appear slightly supportive. Some snow into the plains may help to reduce moisture stress on the winter wheat crop, and traders see the snow as insulation against the bitter cold weather into the forecast for the weekend. Some traders see this news as slightly negative. March wheat closed 1 cent higher on the session yesterday but up 17 cents from the lows. Ideas that demand will improve ahead and a sharp break in the US dollar helped to attract buying interest on the break. The market was under significant long liquidation selling pressure early in the day, but a lack of new news plus a turn down in the US dollar helped to spark a strong recovery bounce and a return to above Tuesday’s highs. Some drier weather in Australia and ideas that parts of the winter wheat growing areas in the US will receive snow cover for protection against the bitter cold snap in the forecast for the weekend helped to pressure the market early. Traders see the lower dollar as a reason to suspect increased interest in US wheat into the first quarter of 2011. In addition, European supplies are running low, and inflationary concerns in some countries has buyers a bit nervous with supply. Traders see weekly export sales, for release before the opening, near last week’s number of 597,000 tonnes. Bangladesh is tendering to buy 50,000 tonnes of rice and 50,000 tonnes of wheat. Iraq is also tendering to buy 100,000 tonnes of wheat and Turkey is in the market for 300,000 tonnes of wheat.

Bron: CME