March wheat traded 5 3/4 cents lower overnight. The dollar was higher overnight.

Wheat continues to see a higher level of volatility than either corn or soybeans with the market falling sharply over the course of the session yesterday. This came on a mix of local, commission house and fund selling. The wheat market moved lower again overnight in line with corn and soybeans as well as the higher dollar. The weekly Winter Wheat Conditions report showed 66% of the US winter wheat crop rated good/excellent compared to 68% last week and 45% last year. The 10 year average for this time of year is 56%. Kansas crops are now rated 71% good to excellent, which has helped pressure KC wheat vs. Chicago. The weekly winter wheat planting report showed 96% complete compared to 94% last week and 96% last year. This week's export inspections were 14.3 million bushels, up slightly from last week. Inspections to date stand at 56.6% of the projected total for the year compared to a 5-year average of 47.2%. Inspections need to average 15.3 million bushels each week to reach the projected total. Harvest progress in Argentina and Australia were said to be a bearish factor yesterday with greater pressure hitting the KC market. Weather is still expected to be wetter in Australia this week in scattered locations, which may cause some minor harvest delays. Pakistan is expected to tender for near 500,000 tonnes of wheat this week. The Flour Mills Association in Taiwan bought 42,820 tonnes of US wheat.

Conditions have generally improved in Brazil with scattered recent rains gradually extending the areas with adequate soil moisture in the north and dry conditions allowing more rapid planting progress in Parana. Weather remained dry over the past 24 hours in Argentina, and forecasts are for more of the same for the remainder of the week. In the US, weather is still expected to be dry in the Plains and most of the Midwest through the weekend, with the exception of some rain and snow in Kansas on Sunday. Also, some snow may hit the extreme eastern and northern Midwest by this weekend. Bangladesh is tendering for 100,000 tonnes of wheat with a closing date of December 15th. Jordan is tendering for 150,000 tonnes of hard wheat with a closing date of November 19th.