December wheat was down 4 3/4 cents late in the overnight session. Outside market forces look bearish again today with the US dollar at a 6-week high and negative action for equities, energies and metal markets overnight. Overnight selling pushed March wheat to a new 16-month low, as a burdensome world supply and a hefty supply of exportable surplus wheat from countries where currency values favor exporters has helped to pressure. Weakness in the Euro plus more talk of a large Australia crop moving on the world market just ahead has helped to pressure as well. December wheat closed 16 cents lower on the session yesterday and down 23 cents from the early peak. Another jump in the US dollar and talk that the rally Tuesday may have been short-covering from fund traders helped to pressure the market. A jump in energy markets and a brief rally in the other grains supported the bounce to higher on the day, but the market pushed back down into the mid-session. Open interest for wheat was down 8,999 contracts on the sharp rally Tuesday, suggesting the foundation of the rally may have been short-covering. A large European grain firm pegged 2012 world wheat production at 694 million tonnes from 681 million this year. Syria rejected a tender to buy 100,000 tonnes of wheat due to high prices. Algeria bought 400,000-500,000 tonnes of wheat, with many traders believing it was South American origin. December KC wheat also closed sharply lower on the session yesterday and pushed down to the lowest level since October 11th.