December Wheat finished down 10 1/4 at 854 1/2, 14 3/4 off the high and 19 1/2 up from the low. March Wheat closed down 10 3/4 at 878 1/4. This was 19 1/4 up from the low and 14 3/4 off the high.

Wheat opened lower and remained lower throughout the day with prices in the Dec4ember contract mostly chopping just above the opening level. Wheat lost to corn on the day although wheat trimmed its losses substantially on the spread into the close. Chicago kept pace with KC for the most part on the day and both markets gained on Minneapolis in the December contracts. Weakness was attributed to the higher dollar and lower crude along with improved crop weather for wheat in Australia and Argentina. Forecasts in Canada are also favorable to late crop development with no frost expected for the next week. Millers in Taiwan will tender for 40,000 tonnes of US wheat on Friday. Reports today indicated that Ukraine's wheat crop may be only 11% milling quality, even lower than was indicated a week ago. This is expected to divert further export business in wheat to the US where quality levels are high this year. Reports yesterday from Germany indicated a much larger EU wheat crop than has been forecast by the USDA, but there are also expectations of a higher than usual percentage of feed quality wheat in both Germany and France. This may also be weighing on corn which will face increased competition from feed wheat on world markets. The strong dollar and bumper supply of soft wheat in Europe is expected to shift some export demand from the US to the EU in coming weeks. Basis levels at the Gulf were mostly steady today, but the basis has declined 35-40 cents over the past two and a half weeks.

December Oats closed down 9 at 373. This was 7 1/2 up from the low and 9 3/4 off the high.