December wheat was up 11 3/4 cents late in the overnight session. Outside market factors look positive today with a lower US dollar and strength in equity markets plus strength in other commodity markets. Wheat is finding strength from a tightening supply of hard red winter and hard spring wheat, fears of acreage losses for the spring wheat crop, quality issues from too much rain in Germany and from higher Russian wheat export prices. Offering prices are on the rise in Russia, and this has helped spark some support for the market, but traders still see a sharp rise in exports from Russia and Ukraine as a significant factor to hold down US exports in the months just ahead. Milling wheat futures in Europe were up to a two-month high overnight and up 0.9% from Friday. The Agriculture Minister in Kazakhstan believes grain exports this season could exceed 10 million tonnes, compared with 5.9 million last year. UAE private buyers are tendering for 75,000 tonnes of wheat. Delays in the harvest of the US spring wheat crop plus mounting concerns for the upcoming planting season for the winter wheat crop in the southern plains has added to the positive tone. December wheat closed 22 cents higher on the session Friday and up 29 cents for the week. Sharply higher gold prices, a weakening trend for the US dollar and a recovery bounce in the stock market were all factors to help support. Traders credited some of the strength to short-covering and to the lack of a significant drought-busting rain event in the forecast for the central and southern plains. The first official wheat production estimate from the Canadian government will be released on Wednesday, and traders are looking for an all-wheat estimate near 23.5 million tonnes, which is about 200,000 tonnes higher than expectations just one month ago, due to warm weather that helped boost growth. Production last year was 23.167 million tonnes. Traders see Ukrainian wheat exports near 9.7 million tonnes for the 2011/12 season, up from 4 million last year, and Russian exports near 20 million, up from 3.4 million last year. The Romanian Agriculture ministry reports that wheat production should be 7.2 million tonnes this year, up from 5.7 million last year. December Minneapolis wheat closed about 59 cents higher last week, as traders had begun to expect a revision lower in harvested acres for the spring wheat crop. The Commitments of Traders reports as of August 16th showed non-commercial traders were net short 23,324 contracts, a decrease of 6,953 for the week. The short-covering trend is seen as a short-term positive force. Non-commercial and nonreportable traders combined held a net short position of 45,205 contracts, down 8,722 for the week. Commodity index traders held a net long position of 203,033 contracts, up 4,065 for the week.