December Wheat finished down 1 at 742, 8 off the high and 16 1/4 up from the low. March Wheat closed down 3/4 at 784. This was 17 3/4 up from the low and 8 1/2 off the high. March wheat traded lower in the overnight session and mostly mixed to higher during the day session before easing to fractionally lower into the close. This came on a day of mixed trade in commodity markets. The dollar was higher overnight and today, and traders credited the overnight weakness to this factor. Traders said that a rally in European wheat markets and ongoing concern over wet weather and quality issues into the start of the wheat harvest in Australia continue to support the wheat market. Sources in Australia indicate that up to 60% of the crop in the crucial SE wheat belt may be reduced to feed quality versus and normal percentage near 5-10%. Traders said that strong gains in corn also brought carryover support this morning, but selling by funds and by spreaders versus corn added pressure later in the session. Traders are also looking to this week’s supply and demand report from the USDA which is expected to show a modest drop in US all-wheat ending stocks for the 2010/11 crop marketing year. Export demand for higher-quality US wheat has been relatively strong this year and the expected quality reductions in Australia come at a time when dry weather has stressed the higher protein US hard red winter wheat crop as it moves into winter dormancy. Forecasts remain dry for the region over the next 10 days. March Oats closed up 5 at 378. This was 7 up from the low and 1 1/2 off the high.

Bron:CME