May wheat was trading 3 cents lower late in the overnight session. Outside market forces look slightly positive today with a weaker US dollar and some support from higher gold and crude. Traders expect the USDA Outlook Forum today and tomorrow to show an increase in ending stocks for the 2012/13 season for US wheat. Higher planted area is already confirmed for the winter wheat crop and traders see higher spring wheat acres due to the increased availability of un-flooded acres in the northern plains this year. Some traders believe that the downside is somewhat limited short-term due to the fact that any new tender business might move to the US due to competitive pricing. European wheat futures were higher overnight but this seems to be support from the rally in the US yesterday. May wheat closed moderately higher on the session yesterday after early weakness but stayed inside of Tuesday's wide range. A stronger US dollar and weakness in equity markets helped to pressure the market early but a lack of new fund trader selling helped spark a short-covering bounce to higher on the day. Ideas that the break Tuesday was a bit overdone helped to provide some support and talk that the US is now very competitive on the world market added to the positive tone. Tunisia tendered to buy 50,000 tonnes of optional origin soft wheat after the close and bought the wheat this morning. Bangladesh is tendering for 50,000 tonnes of wheat in order to replenish supply. There is talk that at least 88,000 tonnes of US wheat has been sold to Spain and that as much as 200,000 tonnes could be sold soon. Spain normally buys from the Black Sea producers. A relatively dry outlook for the western sections of the central and southern plains appears to be a slightly positive force. India wheat stocks on February 1st reached 23.4 million tonnes as compared with a government target of owning at least 8.2 million tonnes. This appears to be a burdensome total ahead of the harvest which occurs in March and April.