May wheat traded 1 1/2 cents higher late in the overnight session. Outside market forces look positive for grain markets today with a weaker US dollar and strength in metal and equity markets. A burdensome supply outlook with record high US soft red winter wheat ending stocks and record world ending stocks seen as bearish. The USDA saw increasing wheat production estimates from India and Australia last week and both countries may need to be adjusted higher in next months report. Traders are also nervous that the USDA outlook Forum new crop supply/demand outlook will show a further expansion in ending stocks for the 2012/13 season. European wheat futures were down overnight as rising temperatures following the recent cold snap have helped to pressure. March wheat closed moderately lower on the session yesterday and gave back a good portion of Monday's gains. Funds were noted sellers late in the day to pull the market from higher to lower on the day in the last hour of trade. A strong US dollar, news of record high wheat production in Australia and talk of less wheat weather threats just ahead spark some long liquidation selling pressures. The market managed to hold support above Monday's lows and bounced to near unchanged on the day into the mid-session. Australia officials raised their wheat production forecast by 4.2% to a record high 29.5 million tonnes. The bidding deadline on the Taiwan tender for 85,250 tonnes of US wheat is tomorrow. Saudi Arabia announced a tender to buy 330,000 tonnes of hard wheat from global suppliers. The USDA baseline outlook for the 2012 season shows total planted area at 56.5 million acres from 54.4 million this season. Ending stocks for the 2012/13 season would come in at 887 million bushels as compared with 845 million for this season. The updated USDA supply/demand views will be released for the Outlook Forum late next week.