March wheat was up 22 1/4 cents overnight. Outside markets appear slightly supportive but colder than expected weather in the western plains on the weekend and forecasts for more cold weather ahead helped to support. Cold weather in the plains was enough to spark some concerns for light winterkill damage in areas which did not get snow cover. A longer-term forecast for another cold blast next week was also seen as a positive factor overnight, and flooding issues in the headlines for northeastern Australia also provided underlying support. Floods could slow the movement of grains and coal out of the ports in Australia as the wettest spring on record continues to provide some support to the wheat market. Morocco is tendering to buy 175,000 tonnes of milling wheat. March wheat closed the year at 794 1/4, up 15% for the month and up 27.2% for the year. The market traded lower early but the sharp break in the US dollar helped to provide some buying support on Friday for a bounce. In addition, the surge in other grain markets and ideas that agricultural markets will move higher in 2011 also helped provide support. Traders saw snow cover in the western plains as insulation against cold weather (sub-zero) into the weekend, but many areas of the southern and far western belt remain too dry and temperatures were a little colder than expected. Argentina weather is dry enough to see the harvest advance and exchange officials raised their production forecast. Wheat is thought to be 75% harvested in Argentina. Traders see the lower US dollar and a tight supply of exportable surplus from Europe as a reason to suspect improving exports ahead.

Bron: CME