December Wheat finished up 12 at 680, 9 1/2 off the high and 17 1/2 up from the low. March Wheat closed up 12 1/4 at 701 1/4. This was 17 up from the low and 8 3/4 off the high.

Wheat higher in contrast to soybeans and corn this morning and remained higher throughout the day despite sharp breaks in corn and the soybean complex. Floor traders indicate that specs were active buyers of wheat against short positions in corn and soybeans and wheat gained very sharply against those markets on the day. Weather in the Southern Hemisphere continues to be beneficial to crop development with rains now expected again in New South Wales Australia later this week and fairly good rains also being forecast in the still dry Argentine wheat belt this week. Statistics Canada will release its latest estimate of wheat production on Thursday morning. The government of Iran reportedly has said that it will import 5-6 million tonnes of wheat in 2008/09, but now says that none of the wheat will be from the United States. The USDA's Quarterly Grain Stocks and final Crop Production report this morning showed wheat stocks at 1.856 billion bushels as of September 1st compared to 1.717 last year. This was lower than the lowest trade estimate and reflects a rapid rate of export sales and export inspections for wheat over the past three months and also a tendency to use more wheat for feed due to high corn prices. On a more negative note, the USDA raised its estimate of 2007/08 US All Wheat production to 2.499 billion bushels from 2.462 billion on the August S&D Report. They lowered harvested acreage for winter wheat, but raised the average yield to 44.9 bushels per acre compared to 43.5 on last month's report.

December Oats closed down 2 at 316. This was 3/4 up from the low and 5 off the high.