March wheat was up 8 1/2 cents late in the overnight session. Outside markets were quiet with a positive tilt. News that Egypt tendered and then bought 170,000 tonnes of wheat over the weekend along with new tenders popping up for 300,000 tonnes to Turkey, 50,000 tonnes to Algeria and 100,000 tonnes to Iraq helped drive the market sharply higher overnight. Bangladesh is also tendering for 50,000 tonnes. Traders see another burst in short-term demand plus some additional cold weather in the forecast for the plains this week as positive forces. Of the Egypt tender, 55,000 tonnes is US soft white wheat. March wheat closed 5 1/4 cents lower on the session Friday but up 28 cents on the week and up 11 1/4 cents from the lows of the day. The market saw lower trade early Friday due to a strong US dollar, weakness in energy markets and some jitters regarding talk of the overbought condition of the market. Traders saw less panic buying on the tender wire and a slightly calmer situation in Egypt as somewhat negative, but the renewed spurt in demand over the weekend was enough to spark new buying support. Traders saw the possibility of winterkill damage from last week's cold blast and maybe a bit more this week, but evidence of damage will not be available until the spring, and this may have sparked some selling pressures on Friday. Stats Canada pegged wheat stocks at the end of the year at 20.232 million tonnes from 22.524 million last year. This was in line with trade expectations. The Commitments of Traders reports as of February 1st showed non-commercial traders were net long 36,939 contracts, an increase of 2,233 contracts for the week. The buying trend is seen as a short-term positive force. Commodity index traders held a net long position of 205,227 contracts, up just 193 or the week.
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