The December Pool Return Outlook from the Canadian Wheat Board for the 2007-08 crop year included a $41 to $52 increase in the milling wheat pool compared to November.

Director of Weather and Market Analysis Bruce Burnett says one of the keys behind that was the imposition of wheat export restrictions in Argentina.

What's taken place is the government has closed its export registry, effectively stopping wheat exports.

Burnett thinks there's a chance the export registry will re-open, but the recent frost in the area means it would only have a limited impact on sales.

Further tightening world wheat supplies is the fact the US sales program has been very robust so far this crop year.

Burnett expects the old-crop wheat market to remain extremely tight, which means very volatile markets.