March wheat finished 2 cents lower overnight. The dollar was higher again and other outside markets were narrowly mixed.

The wheat market traded in a much narrower range yesterday in comparison to Monday. Traders said that the narrow gain posted by the March contract on the day was disappointing after a higher start. Prices overnight were lower, but they remained within yesterday's trading range in March wheat. Traders are concerned about a potential softening of export demand in wheat despite a spate of tenders this week. Syria passed on its tender for 200,000 tonnes of wheat yesterday due to high prices and both Iraq and Egypt failed to buy any US wheat on their latest tenders. Against this backdrop, Russia has announced plans to subsidize 10 million tonnes of grain exports during the first half of 2009. This may result in the further erosion of US business in the Mediterranean Basin as well as raising hopes of even lower prices by buyers such as Syria. Deliveries against the December futures contract today were 3,499 contracts which brings total deliveries to date to 14,709. Traders will see an update for the Canadian wheat crop this week and will continue to monitor export developments.

Snow and rain are expected in the central and north central Plains and into the NW corn and soybean belt today. Mostly dry weather is then expected through the weekend with the exception of periodic moisture in the extreme western Plains and extreme northern and eastern Midwest. Syria passed on all bids in a tender for 200,000 tonnes of soft wheat. Japan is tendering for 72,000 tonnes of wheat on its latest weekly tender. Jordan is tendering for 100,000 tonnes of optional origin wheat for delivery in March. Bangladesh is tendering for 100,000 tonnes of wheat with a closing date of December 15th.