December wheat was 7 cents lower overnight. The dollar was moderately higher with other outside markets leaning toward the weak side. December wheat moved to its highest level since August 12th early in the day session yesterday and then fell to a substantial loss on selling by funds and other specs. Traders blamed the losses on a firming trend in the dollar and heavy selling by funds in corn, along with the favorable production outlook for wheat in the Southern Hemisphere. A sharp increase in projected US ending stocks of soft red winter wheat were also considered a drag on prices yesterday. The market saw further losses overnight in line with a higher dollar, but weather forecasts in the US call for continued dryness in the Midwestern soft red winter wheat belt into the weekend, and this is considered supportive. Light showers are forecast for the Midwest region by early next week, with more substantial rains expected in hard red winter wheat areas of the central and south central Plains by the end of the current week. The USDA lowered US all-wheat ending stocks to 848 million bushels from 853 in October. On the world front, Argentina’s production was raised to 13.5 million tonnes from 12.0 million in October. Australian production was raised to 24.0 million from 23.0 million October. World production was up to 642.89 from 641.44 million tonnes last month with usage up by nearly 2 1/2 million tonnes. Ending stocks were lowered to 172.5 from 174.66 million tonnes in October. The increased world usage number was paced by a projected 2.0 million tonne increase in feed usage for China

Bron: CME