March wheat was down 6 1/4 cents late in the overnight session. Outside markets look bearish with concerns that the strong economic news from China might lead to tightening monetary policy, and this has cast a negative demand tone on commodity markets. Food inflationary fears appear to have given wheat demand a near-term boost, as many countries are starting to focus on securing supplies of wheat, rice, cooking oil and sugar to meet their domestic demand. However, concerns that China’s actions to slow their economy might ease demand for commdodities worldwide helped to pressure metals, energy and grain markets overnight. Tunisia has issued a tender to buy 25,000 tonnes of durum wheat and 25,000 tonnes of barley. March wheat closed higher on the session yesterday but more than 10 cents off of the early highs. More flooding concerns in Australia and continued dryness in the US Central Plains helped to provide support. Traders also see cold and very dry conditions in parts of China as a potential supportive force. A more aggressive import pace from key importers on the world market with talk of more urgency for the new tenders helped to support higher trade early yesterday with new crop July wheat moving to the highest level since September of 2008. Iraq issued a tender to buy at least 100,000 tonnes of wheat from any origin for shipment in February. Aggressive buying from Algeria, Turkey and others in the past week plus talk that Australia wheat could suffer further quality issues because of recent flooding rains also helped support strong buying and higher prices. A turn lower in corn and the stock market helped ease the buying support after the early surge, but the market held on to part of the early gains into the close. Argentina farmers are continuing their 5-day protest over taxes, and this has brought wheat and other grain shipments to a standstill this week. Japan bought 149,114 tonnes at their weekly tender.

Bron: CME