December wheat was up 2 cents late in the overnight session but traded as much as 16 1/2 cents lower before outside forces turned somewhat supportive. A weaker US dollar and a strong recovery in the US stock market helped to support. While parts of Oklahoma received some decent rains last week, the outlook for the southern plains looks mostly dry for the next few weeks, and traders see the need for significantly more rain in the next several weeks to get the winter wheat planted and off to a good start. The outlook is somewhat threatening if the US and Ukraine stay dry in the next several weeks, as supply could tighten into 2012. The recent steep downtrend has been demand-related, as the surge in exports from the Black Sea region has helped limit demand from the US and Europe. December wheat closed 7 cents higher on the session Friday but still lost 47 1/2 cents for the week. While the other grain markets remained under speculative long liquidation selling pressures on Friday, buyers were more active in wheat with increased fears of planting issues for the winter wheat crop in the US, continued dryness issues in Argentina and dry planting weather for Ukraine. December Minneapolis wheat traded as much as 33 3/4 cents higher and experienced the highest close for the week on Friday, and the rally helped to support active short-covering in Chicago. Traders see lower production for the spring wheat crop in this Friday's USDA update, as both yield and harvested acreage could be adjusted lower. December wheat saw a break of as much as $1.81 1/4 off of the August 29th peak, and bargain hunters emerged on Friday to provide underlying support. Traders also noted a short-covering trend, as rising open interest last week raised concerns that fund traders have built a very large net short position. Better than expected weekly export sales and news that Taiwan bought 52,920 tonnes of US wheat are factors which also suggested increased demand on the recent break. The Commitments of Traders reports as of September 20th showed non-commercial traders were net short 38,387 contracts, an increase of 12,938 for the week. The increased selling from fund traders is seen as a short term negative force. Non-commercial and nonreportable traders combined held a net short position of 60,840 contracts, up 12,831 for the week. Commodity index traders held a net long position of 198,288 contracts, down 4,479.