Mike Pearson takes a look at recent movements in the market and what they may mean to wheat demand.

Wheat prices have been declining in recent months due to the ample U.S. supply, a good crop out of Eastern Europe and a declining global demand.

Egypt has authorized the purchase up to 3.81 tons of wheat-- nearly one third of their annual need in one purchase. The delivery period is between October- April. This is due to their desire to lock in prices at their current lows.

Wheat futures were higher last week and were influenced by Egypt and Algeria.

The timing of Egypt's purchase couldn't be more crucial as global supplies tighten. There is a poor soft wheat harvest in Europe, especially in France, which is projected to see the worse soft wheat harvest in 40 years.

For U.S. wheat farmers, this could be a double edged sword as prices stabilize and could elevate them.

On the other hand, Egypt could get their wheat form Russia which as been aggressive in pricing.

The implications could be a wider trend to other commodities meaning it could bring higher prices or could just be limited to the wheat market.

The hope is that this will transition into better prices for all farmers as the USA moves into fall and winter.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.