December wheat was up 3 1/2 cents late in the overnight session. Outside market factors look mixed with choppy trade in the US dollar and a firm tone to equity markets but some weakness in energy. September wheat deliveries came in at 10 contracts this morning, bringing the total for the month to 3,539. Egypt tendered for wheat after the close. Traders will monitor this tender and the offering prices for some near-term direction. The bearish news from the USDA this week has the market in a steep downtrend channel. December wheat closed sharply lower on the session yesterday, down for the sixth session in a row. The market has now traded at or below the previous day's lows for ten sessions in a row and has moved to its lowest level since August 9th. Funds were noted sellers again yesterday, and talk of better rains for the plains next week which might help boost winter wheat plantings helped to pressure. Weakness in corn and a continued concern that US wheat will struggle to compete with Russian and Ukrainian wheat on the world export market helped to pressure. The USDA news of adjustments higher in US and world ending stocks added to the negative tone this week. Outside market forces were somewhat positive yesterday, but weakness in corn and soybeans were seen as negative forces. Libya bought 50,000 tonnes of Russian milling wheat. Talk that winter wheat areas in the central and southern plains could see rain amounts of 1-2 inches next week was seen as a negative force to spark some of the selling yesterday. China bought 17,500 tonnes of Australia wheat for its national grain stockpile. India wheat stocks at the end of August totaled 33.6 million tonnes as compared with a target of 17.1 million for this time of the year. India is able to export wheat for the first time since 2007. The India Farm Minister indicated that the country will aim to produce 84 million tonnes this year from the record high 85.93 million last year. The outlook for a significant jump in world ending stocks and expectations for fierce competition in the export market from Russia and Ukraine has helped hold the market is a steep downtrend, but technical readings are reaching oversold extremes.
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