March Wheat finished up 12 3/4 at 769 1/2, 7 off the high and 10 up from the low. July Wheat closed up 13 1/4 at 807 3/4. This was 11 1/2 up from the low and 6 off the high. March wheat pushed higher to start the overnight session and then eased and much the same thing happened in the day session. Nevertheless, the wheat market managed to post a substantial gain on the day with the March contract closing at its highest level since December 13th. Traders said that the gains came on supply worries that overrode the effects of a higher dollar. Continued dryness in US hard red winter wheat areas is thought to be curtailing the supply outlook in the US into 2011/12. The US is the world’s largest wheat exporter. Harvest delays and quality downgrades in Australia are still an issue as forecasts again call for unwelcome rain in eastern growing areas which have been plagued by weeks of wet weather with the exception of some clearing last week. In addition, traders report that Russia is contemplating an extension of its ban on grain exports past July 1, 2011. Also, farmers in Argentina are reportedly contemplating some sort of action to interrupt the flow of wheat to mills and export channels. However, more snow is forecast for the Midwest this week and that should add to the developing snow cover that is protecting crops in many areas from frigid temperatures. This week’s export inspections for wheat were 23 million bushels, up from 18.8 million last week. Inspections need to average 26.6 million bushels each week to reach the current USDA export forecast. Cumulative inspections stand at 49.3% of the USDA’s forecast for the entire season versus a 5-year average of 57.3% sold for this time of the year. March Oats closed up 4 at 390 1/2. This was 4 up from the low and 2 3/4 off the high.

Bron: CME