March wheat traded 8 cents lower late in the overnight session. Outside market forces look bearish this morning with a surge up in the US dollar and weakness in the energy and metal markets. Wheat bulls were hoping for tightening US and world ending stocks and while the US numbers did show some tightening, the burdensome world supply plus less weather concerns for winter wheat crops sets the stage for increased selling pressures ahead. The 6-10 day forecast for the winter wheat belt shows above normal precipitation and trade focus could begin to shift to spring soil conditions instead of cold weather concerns over the near-term. In addition, India agronomists see winter wheat crops there in excellent condition. March wheat closed sharply lower on the session yesterday and pushed to the lowest level since January 30th. Talk that fund traders were exiting wheat/corn spreads and ideas that the world ending stocks data would weigh on markets ahead helped to pressure. The report news was somewhat bearish and the market was lower early but the weakness in the US dollar and strength in gold and energy markets helped support some strong buying early in the day to push the market higher. However, selling emerged to drive the market sharply lower on the day. Ideas that European weather is turning less threatening and that US plains weather may show some improvement ahead helped to pressure the market led by new crop Kansas City wheat which was down 18 1/2 cents on the day at the lows. July KC wheat is already down more than 50 cents off of the February high. The USDA reports were considered slightly supportive for the US numbers but bearish for the world numbers. The USDA pegged US ending stocks at 845 million bushels as compared with 870 million last month due to a revision higher of 25 million for exports. World ending stocks came in at 213.1 million tonnes as compared with expectations under 209 million and 210 million posted last month. This pushes world ending stocks to a new all-time high and the world ending stocks to usage ratio to the highest level since the 2001/02 season. Ukraine's Farm Minister has asked grain companies to focus on exports of corn and barley but not wheat. Ukraine harvested near 22.3 million tonnes of wheat last year but 1012 production could fall to 8-14 million tonnes. Net weekly export sales for wheat came in at 707,900 metric tonnes which was higher than expected. As of February 2nd, cumulative wheat sales stand at 84.3% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 82.6%. Sales of 243,000 metric tonnes are needed each week to reach the USDA forecast. Algeria bought at least 700,000 tonnes of wheat on the world market and Syria is tendering to buy 100,000 tonnes.