May wheat was trading 9 cents higher late in the overnight session. Outside market forces look slightly positive today. Ideas that the US will continue to see strong export news in the weeks ahead as Russia and Ukraine have backed away from the world export market appears to be the primary reason for the turn up yesterday and sharply higher trade overnight. Talk of the hefty net short position from fund traders added to the positive tone. Ukrainian grain traders have agreed to limit wheat exports to 1.7 million tonnes for the February to July time frame. Ukraine is bracing for a smaller crop for the 2012/13 season as plantings were severely restricted by drought and cold weather added to the damage this month. Iran has been able to purchase near 1.1 million tonnes of wheat in the past few weeks using non-dollar currencies, gold and oil to work around sanctions. May wheat closed slightly higher on the session yesterday after choppy and two-sided trade. Ideas that the market has already pushed low enough to attract a significant jump in demand for US wheat helped to support. Outside markets shifted from negative to positive and Egypt bought US wheat and these factors supported the market early. Algeria bought 300,000 tonnes of optional origin wheat. Ideas that the market is oversold after falling to the lowest level since January 20th plus weakness in the US dollar and a surge up in the US stock market helped to spark solid gains. Egypt bought 180,000 tonnes of US wheat and news that Russia did not even submit offers helped to support. Weekly export sales came in below trade expectations at 420,400 metric tonnes for the current marketing year and 7,500 for the next marketing year for a total of 427,900. As of February 9th, cumulative wheat sales stand at 85.9% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 84.0%. Sales of 232,000 metric tonnes are needed each week to reach the USDA forecast. Taiwan bought 85,050 tonnes of US wheat at their tender. July KC wheat closed 14 1/4 cents higher on the session yesterday with an outside day up after first pushing to the lowest level since January 20th. There is only light rain expected for the next few weeks for the central and southern plains. India's Farm Minister indicated that this year's production is likely to pass the official record high estimate of 88.31 million tonnes. This is up from last year's record of 86.87 million tonnes and up from 80.8 million for the 2010/11 season. January 1st wheat stocks at government warehouses reached 25.7 million tonnes which is more than three times higher than the official target. Turkey is tendering to sell 200,000 tonnes of wheat and barley. Ag Canada lowered their acreage forecast slightly and pegged wheat production for the 2012/13 season at 26.3 million tonnes, down 200,000 from last month.