March wheat traded 4 cents higher late in the overnight session. Outside market forces look mostly negative for today with some strength in the US dollar and weakness in metal and energy markets. With a continued surge in open interest and rumors that Russia would tax grain exports, short-covering seems to be a significant threat for the bears. The US looks competitive on the world market and traders believe that the next Egypt tender would see US wheat. However, even with a jump in US exports for the old crop season, record soft red wheat US ending stocks and a 12 year high for world ending stocks does not allow for much urgency from end user buyers. On top of the negative news for the old crop season, traders remain concerned over the potential for expanded acreage in the US and Canada for the coming season as millions of flooded-out acres from the past few years could come back into production for the northern plains and Canadian Prairies. This may help ease the premiums for spring wheat. March wheat closed sharply higher on the session yesterday as rumors that Russia would impose a tax on exports to ensure wheat supply at home helped to spark some buying and short-covering. Some traders dismissed the rumors but many commercial traders believe that the Russia government is considering imposing grain export duties from April on. Traders believe Russia has already exported near 21-22 million tonnes of grain and the government indicated last year that there may be restriction on exports beyond 23-25 million tonnes. Eastern areas of the southern plains in the US look to get hit with 2-4 inches of rain over the near-term but central and western areas look to remain dry for the next few weeks. Weakness in the other grains and a negative tilt to outside market forces helped to pressure the market early yesterday. The move back over Monday's highs sparked aggressive short-covering and activated stops to drive the market sharply higher. The rally pushed the market to the highest level since January 12th. Talk of a record net short position from speculators added to the positive tone.