US wheat futures closed higher in overnight trade taking values to a week on week rally and taking MGEX spring wheat futures to a price point higher than January 1st. MGEX cash price were sharply higher.
The rally could be seen as technical. Wheat futures at Chicago had amassed a large speculative short position through January. Grain is often used as an inflation hedge too. Some commentary is suggesting that the rally is fundamental, that a short-term increase in global demand should see stock in the short term reduced further than expected. There is also concern for new crop production in Russia and the US.
These fundamental concerns have been in place throughout much of January though, so to now call the rally a fundamental rally instead of a rally timed to suit the speculative position of the fund managers, a technical rally, might be a bit smoke and mirrors.
The condition of the US HRW crop was well known prior to the end of December. As the US went into winter the Kansas HRW crop was rated as low as 24% Good / Excellent, 42% of the crop rated Poor to Very Poor. This is terrible and should have supported wheat through to at least the spring. To wake up on January 26th and say they have concerns about the US winter wheat crop is like putting your seatbelt on after a car crash while the Ambo is asking if you if you are all right while telling their offsider to grab those bits off the dash so they can sow them back on later.

US weekly wheat exports were a little above the average trade expectations. S.Korea was said to have picked up a couple of hatches of US feed wheat.
Argentina is expected to see more rain next week, possibly up to 50mm across parts of northern Cordoba and Santa Fe.  There is not expected to be any significant rainfall across Kansas or western Oklahoma and western Texas over the next week. Russia and France should dry out a little.