March wheat was 9 1/4 cents higher overnight. The dollar was modestly lower. Deliveries against the December wheat contract were 2,846 contracts with the total for the delivery period to-date at 10,400. Wheat pulled higher again overnight despite lower soybean and corn markets, with traders again crediting the support to weather problems in the US and Australia. The dry pattern in the US affects mainly the hard red winter wheat belt with the exception of eastern Oklahoma. No major relief is expected through the end of the weekend and possibly longer as the crop enters dormancy. The major issue in Australia has become excessive rains in the SE into harvest which is raising the possibility of lost production, lower yields and lower quality in the big growing states of New South Wales and Victoria. Dry conditions have prevailed in Western Australia for a longer period of time and that is believed to have already reduced yields thre. Egypt’s state buying agency, GASC, reported yesterday that it had bought 55,000 tonnes of US soft wheat and 165,000 tonnes of US hard wheat. All of it is for shipment during February 1-10. Traders said that the fact that all of the wheat was from the US was considered supportive on yesterday’s rally. Funds were strong buyers yesterday with traders continuing to note that the trend-following (managed) funds’ net short position in wheat continues to be large. European traders report that Algeria failed to buy any wheat on its latest tender for up to 50,000 tonnes of optional origin milling wheat. The USDA will issue its weekly Export Sales report this morning and traders are looking for a total of up to 650,000 tonnes. This would be lower than the 745,200 tonnes announced last week, but still above the weekly average of 412,200 tonnes that are needed each week to reach the USDA’s current export projection. March wheat moved sharply higher yesterday which pushed futures to its highest level since November 12th.

Bron: CME