December wheat was down 5 1/2 cents late in the overnight session. Outside market factors look mostly positive with a slightly lower US dollar and some strength in equity and energy markets. September wheat deliveries came in at 36 contracts this morning, bringing the total for the month to 3,575. More rain into the forecast for the southern plains into late in the weekend plus slow demand indications have helped keep the market in a steady downtrend over the past few weeks. Ukraine grain stocks as of September 1st were at 21.9 million tonnes, up 20% from last year, and the country is considering extending export duties on grains through 2012. A surge in the expiring September wheat contract yesterday plus short-covering helped support a higher close for December wheat for the first time in seven trading sessions. Talk of the oversold condition of the market and a spurt higher in the September futures which expired at noon helped support a bounce in wheat off of the early lows. Egypt bought 420,000 tonnes of wheat in two separate tenders, with 240,000 tonnes from Russia for November shipment and a further 180,000 tonnes for December delivery. Prices paid were down, but the spread between US and Russia prices has narrowed considerably, and traders see US wheat as close to competing on the world market again. There are some dryness concerns in Ukraine for getting winter wheat planted. Traders believe the rains in the forecast for the plains for late in the weekend have been already “priced” on the current break and that the southern plains will turn dry again next week. Japan bought 109,356 tonnes of wheat at their regular weekly tender. Traders will be monitoring the FSA data today and this could lead to lower spring wheat harvested acreage in future reports.