Related Keywords: Agriculture Email Print | December wheat was 3 cents higher overnight. The dollar firmed into this morning. The wheat market followed most equity and some commodity markets lower yesterday. However, the December contract remained well within the range seen over the past week, and it closed more than 60 cents above the recent low. This comes as rain and cooler temperatures continue to alleviate drought conditions in Russia with more rain expected next week. This is also considered beneficial to winter wheat planting. For now, rain in Russia appears to have cooled talk of a long term extension of Russia’s ban on grain exports past the current end point of December 30th. One analyst notes that while Russia may well extend the ban at some point, the somewhat improved conditions allow them to delay a decision on that issue. Russia’s agriculture ministry reports that their total grain harvest as of August 25th was just 41.5 million tonnes by bunker weight, down 31% from the same period last year. Their wheat harvest stood at 29.0 million tonnes versus 39.3 million last year. The market’s attention has shifted to Germany where unwelcome rains continue into the harvest season. Germany suffered intense heat and some drought this summer which reduced yields and rains during the harvest season are now expected to reduce quality. Germany is the second largest wheat producer in the EU after France and it is a major exporter. Buyers in North Africa and the Middle East have been turning to France and Germany in recent weeks to replace wheat from the Black Sea. Some analysts are calling for a reduction of more than 5.5 million tonnes in German production from last year’s 49.7 million tonnes. In contrast, analysts in Australia are looking for ending wheat stocks as of September 30th to be about 35% above last year’s levels. December wheat moved lower yesterday due to a higher dollar and improved moisture levels in Russia. Weak economic housing data in the US also helped to pressure the market, but wheat prices stayed lower even after the dollar sold off to lower levels prior to the start of the day session. Egypt is looking to buy 55,000 to 60,000 tonnes of soft wheat for delivery during early October. Lebanon bought 50,000 tonnes of wheat yesterday on a scheduled tender.Bron:CME