March wheat was down 5 1/2 cents late in the overnight session. Outside markets appear negative as unrest in the Middle East is pressuring equity markets. The market seems to have quickly priced-in the outlook for some rains in China into the weekend yesterday on the early break but talk of continued poor conditions for the US winter wheat crop and the outlook for dryness to persist in western and southern growing areas of the US winter wheat belt may have helped turn the market higher. The USDA Outlook Forum begins today and lasts through tomorrow afternoon. The USDA left their planted acreage outlook for the 2011/12 season at 57 million acres from the forecast a few weeks ago but this is 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 market managed to close near unchanged on the session yesterday and near the highs of a 44 3/4 cent range. The market pushed moderately lower early in the session led by talk of rain for the northern China winter wheat areas, follow-through technical selling from the limit-down move Tuesday and talk from India of a large crop and potential for increasing exports ahead. Ideas that the market was oversold after a 3-day break of as much as $129 3/4 helped to spark talk of the oversold condition. India officials have indicated the potential for a large crop in excess of annual consumption and higher than last year for the upcoming harvest and there is talk that with current wheat stocks well above needs, perhaps India should increase exports on the world market. Egypt bought 235,000 tonnes of soft wheat from France and the US with 115,000 of the total coming from the US. Saudi Arabia is apparently tendering to buy 275,000 tonnes of milling wheat taking advantage of the break off of the highs. This would be their first major purchase of the year. In addition, Tunisia is tendering for 75,000 tonnes of milling wheat, Iraq is still tendering for 100,000 tonnes of wheat and United Arab Emirates bought 40,000 tonnes of wheat overnight. Morocco will tender to buy 280,000 tonnes of wheat to be used for subsidized flour.