US wheat futures bounced fairly high last night taking back a lot of the lower closes through the week. Week on week we still see some slight loses but since the beginning of the month US wheat futures are just 4c/bu lower, a negligible amount.  This compares to a reduction of AUD$25 / tonne for APW NTP Newcastle for the month of October.
As mentioned on Thursday the technical side of the CME Dec wheat contract looked ripe for a correction and on the face of it there does not appear to be any other explanation for the rally other than technical trade, buying back some shorts.

The other big news of the night was the Egyptian purchase of 420kt of Black Sea wheat, mostly from Russia. The average price came in at US$252.36 CFR Egypt. This is about US$1.00 lower than the previous tender a few weeks ago. It is interesting to note Cargill offered up wheat on the tender, the price equivalent to US$219 FOB USA. When adding freight the Cargill offer was very close to making the price which did surprise a few punters. US wheat had been uncompetitive into the N.African market for a long time.

Russia continues to thumb its nose at those analyst predicting lower wheat exports this year. Overnight Russian officials actually increased projected wheat exports by about 3mt, to 33-34mt. They are well on target to achieve this too with current marketing year volume 34% higher than last year and already at 15.2mt.