December wheat was up 4 1/2 cents late in the overnight session. Outside market forces look positive today with a firm US dollar and less anxiety for the global economy. While the recent USDA reports showed ample US and global wheat supply, the market continues to find some underlying support from fears of significant production declines in the US and Ukraine for the coming year if weather conditions remain dry in the weeks and months just ahead. It looks dry for the next few weeks in both locations. In addition, talk of the record or near record net short position of speculators in Chicago wheat has helped spark oversold condition fears and this has helped support as well. Wheat followed corn higher after early steep losses yesterday. Saudi Arabia plans to import 1.9 million tonnes of wheat this year due to rising consumption. Egypt, the world's largest importer, plans to grow 3 million acres of wheat this season, up from 2.6 million last year and 2.1 million the previous year. December wheat closed slightly higher on the session yesterday with other months mixed. December KC wheat closed down 2 3/4 cents while December Minneapolis wheat closed up 10 3/4 cents. The market was under pressure early, led by weakness in outside markets and strength in the US dollar, but a lack of aggressive new selling plus higher trade in Minneapolis wheat helped support a strong rally from the early lows to trade moderately higher on the day. Weakness in the other grains helped to limit the advance, and the market set back to near unchanged on the day into the mid-session. Taiwan is tendering to buy 43,950 tonnes of US wheat. Japan is tendering for 102,652 tonnes of food wheat at their weekly tender. Weekly export inspections, released during the session yesterday, came in at 16.36 million bushels, which was near the low end of trade expectations and below the 18.4 million tonnes necessary each week to reach the USDA projection for the year.
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