March wheat was up 10 1/2 cents late in the overnight session. A weaker US dollar and strength in energy markets overnight helped to support plus traders see more urgency from buyers. The jump in wheat tenders with more urgency from buyers from the Middle East and north Africa continues to provide underlying support to the wheat market. Algeria bought 800,000 tonnes of optional origin wheat after Algeria's Prime Minister ordered a speeding up of imports. European wheat pushed to new highs overnight and while March wheat is still under the August 10th peak of 864 1/4, other contracts have pushed into new contract highs and so has Kansas City and Minneapolis wheat. Tightening supply of higher quality milling wheat plus unrest over high food prices have also boosted near-term demand. Egypt claims to have secured enough wheat for six months of usage. Iraq is tendering for at least 100,000 tonnes of wheat and Lebanon tendered to buy 22,500 tonnes and Bangladesh is tendering for 50,000 tonnes of wheat and 30,000 tonnes of rice. July wheat saw a rally of 10 cents in the last hour of trade yesterday to move near 3 cents higher on the day. Dry weather in the southern plains and the threat of cold weather moving down from Canada next week which might threaten some crop damage helped to provide some support along with commercial support on the early sell-off. Ideas that Egypt and Iraq may be buyers of US wheat soon helped to support. March wheat also recovered to close higher. Bearish outside market forces plus weakness in other commodity markets helped push the market lower early but while soybeans and corn remained under pressure into the mid-session, the wheat market rallied. The strength in the dollar helped to pressure the market and weakness across most commodity markets added to the negative tone early. Ideas that commercial buyers might be active on minor set-backs helped to support the market. The 46 1/2 cent rally in just three trading days helped support talk that the market is in a short-term overbought condition.
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