December Wheat finished down 41 1/4 at 563 1/2, 28 1/4 off the high and 5 3/4 up from the low. March Wheat closed down 42 1/4 at 583 3/4. This was 4 1/4 up from the low and 34 1/2 off the high.

Wheat was again a bystander today. Yesterday it was a bystander as corn and soybeans moved higher, and today it was a bystander on the way down. Traders said that wheat and other grain markets suffered from the same combination of spillover selling from the massive liquidation in stocks, and a negative Crop Production and Supply and Demand Report from the USDA this morning. However, wheat traded throughout the day, while corn and the soybean complex remained locked at limit down for virtually the entire session. Wheat lost to corn on the day, although corn traded synthetically in options at a level that came close to matching the decline in wheat in the December contracts. The Supply and Demand report this morning raised both US and world supplies compared to last month. The 2008/09 US yield was raised 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.

December Oats closed down 19 at 278 1/2. This was equal to the low and 15 1/4 off the high.