December wheat was down 20 1/4 cents late in the overnight session. Outside market factors look very bearish this morning with a surge higher in the US dollar to the highest level since January and a steep decline in energy and metal markets. December wheat pushed to the lowest level since July 1st overnight, as speculative sellers remained active. Economic weakness warnings from the federal Reserve plus weakness in economic indicators in China and Europe was enough to cause a surge higher in the US dollar and a massive long liquidation selling trend from gold, silver, energy markets and grains. Traders see deflation, not inflation as a key threat if there are more banking issues in Europe and weaker economies in Europe and the US have soured the outlook for the Asia economy. The market remains in a steep downtrend as Black Sea region producers are expected to bump wheat exports to 33.21 million tonnes this season from 14.39 million tonnes last year. The surge in exports from this region means sharply lower exports from Europe, US, Australia and others. December wheat closed sharply lower on the session yesterday and the market fell to the lowest level since July 12th. The market saw some early weakness due to a bounce in the US dollar but nervousness over the Fed Reserve announcements helped to pressure late. A dry outlook for the southern plains in the US, for Ukraine and for Argentina helped to provide some underlying support early, but speculative long liquidation emerged to pressure. Traders look for weekly export sales this morning to come in near the same level as last week's 413,500 tonnes. Egypt tendered for wheat after the close yesterday, and traders will be monitoring this situation this morning. Morocco is also in the market for 200,000 tonnes. Ukraine officials raised their grain harvest outlook to 52-53 million tonnes from their previous forecast of 51 million. The EU wheat harvest is expected to be 135.36 million tonnes, down 2.9% from last year.