March wheat traded 9 3/4 cents lower late in the overnight session. Outside market forces look slightly negative today with a stronger US dollar and weakness in energy markets. Ideas that the rally in wheat of the past few weeks could slow the export outlook plus talk that the short-covering rally may be close to running its course plus some improvement in the US soil condition helped to spark the selling pressures overnight. Ideas that cold weather issues in Eastern Europe were a bit overblown yesterday and talk of the overbought condition of the market added to the negative tone. March wheat closed moderately higher on the session yesterday but well off of the early peak. Fears of crop damage due to very cold weather in Eastern Europe and the Black Sea region helped to spark active buying early and pushed the market to the highest level since October 28th. Talk of fund short-covering plus a sharp break in the US dollar helped to support as well. Private exporters reported a sale of 120,000 tonnes of US soft red winter wheat to unknown destination. For the weekly export sales report for release in the morning, traders see sales near 500,000 tonnes from 618,700 tonnes last year. March wheat has now rallied as much as 93 3/4 cents from the January 18th low. Japan bought 94,000 tonnes of US wheat for April shipment.
Join the Discussion