May Wheat finished down 15 3/4 at 782 1/2, 22 off the high and 6 up from the low. July Wheat closed down 17 at 814 1/4. This was 5 1/4 up from the low and 23 off the high. March wheat closed sharply lower on the session but traded inside the range of the first hour of trade for the entire session. This was the lowest close since December 1st. The market saw a steady flow of speculative selling (thought to be long liquidation) to pressure the market early in the session with futures giving back a good portion of the late rally yesterday. Better weather for China, some rains for the central and eastern winter wheat belt in the US and talk of a much larger world crop for the coming year helped to pressure. The International Grains Council pegged 2011/12 world wheat production at 672 million tonnes, up 24 million tonnes from this past year. In the last USDA world supply/demand report, world consumption for the 2010/11 season was 665.23 million tonnes. The USDA left their planted acreage outlook for the 2011/12 season at 57 million acres for the Outlook Forum from the forecast of a few weeks ago but this is still up from 53.6 million last year. Ending stocks are projected at 663 million bushels which would be down from 818 million bushels this year. The European Union granted export licenses for 439,000 tonnes this week which pushed the cumulative exports for the 2010/11 season to 13.6 million tonnes compared with 11.6 million last year. South Korea bought 30,000 tonnes of US wheat overnight and Saudi Arabia is tendering for 275,000 tonnes of milling wheat. May Oats closed down 15 at 370. This was 4 3/4 up from the low and 18 1/2 off the high.

Bron: CME