December wheat traded 8 cents higher overnight. The US Dollar was higher overnight.

Wheat staged an impressive rally from a lower open yesterday, but the rally failed after late morning, and wheat closed lower along with the soybean complex. Wheat lost to corn on the day, with traders noting active selling of wheat by spreaders against corn. Funds were buyers in wheat early yesterday, although less so than in corn. Harvest progress is advancing rapidly this week in spring wheat areas, with progress already well ahead of last year's pace. Pakistan postponed its latest tender for 250,000 tonnes of wheat yesterday, and traders said that this had a negative effect on prices. Reports initially indicated that this was an indefinite postponement, but the government says that a new closing date will be issued. Reports indicate that this does not mean that Pakistan's needs are covered for 2008/09 and that Canada may make a substantial donation of wheat to help that volatile country avoid destabilizing food inflation. Traders report that the US may also be in talks with the government regarding a donation of wheat. This leaves the tender calendar lighter than it has been in several weeks. Traders will be looking closely at tomorrow morning's Export Sales Report to see if there has been a lessening of wheat sales in comparison to the torrid pace of the past 2 months.

Some rain may hit the extreme northern spring wheat belt on Friday. Otherwise, dry conditions are expected through Monday. A private miller in Malta bought 14,000 tonnes of wheat as expected.