December wheat opened 24 3/4 cents lower on the day at 580 and established an early range of 557 3/4 to 580. Prices were sharply lower in the overnight session, trading below Wednesday's lows in the process. This was followed by a negative Supply and Demand report that raised both US and world supplies compared to the September reports. This brought the sharply lower open although wheat did not hit limit down in the early going. Selling was said to be mainly by commission houses with some fund selling. Locals were said to be on both sides. The USDA's Supply and Demand Report raised the 2008/09 US wheat yield to 44.9 bushels per acre compared to 43.5 last month which increased the US supply by 38 million bushels to a total of 2.5 billion bushels. This was a negative surprise which pushed ending stocks to 601 million bushels compared to 574 million last month and 306 million last year. Exports were left unchanged which was a bit of a negative surprise and feed usage was raised. World ending stocks were raised to 144.4 million tonnes compared to 139.9 last month. This was due to a jump in production to 680.2 compared to 676.3 last month. Australia and Argentina were each lowered by 500,000 tonnes to 21.5 and 12.0 million tonnes respectively. Canada was raised by 1.7 million tonnes in line with the recent jump in the Statistics Canada number. Russia was raised by 1.0 million tonnes. World export and domestic usage numbers were raised slightly. Rain in Argentina recently has boosted the wheat crop there and more widespread rains are expected through this weekend. However, SE growing areas in Australia remain very dry. The wheat tender calendar remains active with much of the buying scheduled over the short term. However, cash markets are quieter this morning amid the sharp sell-off in stocks and limit down moves in soybeans and corn.