March wheat was 1/4 cent higher overnight. The dollar was substantially higher at a new 2-month high overnight. March wheat managed to trade at mixed levels overnight despite a substantial gain in the dollar. Prices remained well within the very narrow range that has been seen in the March contract over the past week and a half. This comes on a mixed to negative outlook for winter wheat in the US and China with the Australian wheat harvest also coming amid somewhat less than favorable conditions. All of this is considered supportive. In the US, the past week has seen a very dry pattern over almost the entire hard red winter wheat belt in the Plains, and this is adding to prior stress, especially in the western and north central hard red winter belt. However, dry conditions have been substantially alleviated in the central and southern Midwestern soft red winter wheat belt over the past week along with Missouri. Other areas, including the SE, remain somewhat dry. Authorities in China report that sowing of winter wheat is nearly complete amid dry conditions with dry weather forecast in the country’s major winter wheat areas in coming days. However, winter wheat plantings in China are estimated to be up 0.3% at 22.67 million hectares. In Australia, dry weather in western growing areas continues and that is viewed as a yield threat. Wet weather in the east may delay harvest and possibly cause quality issues. Bangladesh is in the market for 50,000 tonnes of wheat. The EU cleared 351,000 tonnes of wheat for export in the latest reporting week. The USDA will release its weekly Export Sales report this morning, one day late due to the Thanksgiving Day holiday. The International Grain Council sees global wheat plantings for the 2010/11 season up about 4% to 224 million hectares.

Bron: CME