July wheat was trading 1 cent higher late in the overnight session. Outside market forces look negative today with a strong US dollar and weakness in metal and equity markets. Ideas that the sell-off late last week was a bit overdone plus increased concerns for some cold weather damage in the eastern Corn Belt this week due to colder than expected weather helped to support the market overnight. Some rains in Europe have helped ease crop concerns which is seen as negative. May wheat closed 9 cents lower on the session Friday and down 7 3/4 cents for the week. A lack of new crop production concerns, talk of improving crop conditions and the move from higher to lower for the corn market helped to spark the selling pressures. Spring wheat concerns for cold weather into the weekend helped to provide some light support but sellers were active when corn pushed lower and the market closed lower on the week and experienced lower lows for the move which could keep technical traders bearish. The UN Food and Agriculture Organization believes that Iran wheat imports for the 2012/13 season will be down 32% to 1.7 million tonnes due to high carryover stocks. The Canadian planting intentions report tomorrow morning could show a jump in wheat plantings to nearly 23.5 million acres from 21.464 million last year as there appears to be far less weather issues so far this season. China imported 536,321 tonnes of wheat in March which pushed the three-month total to 1.121 million tonnes, up 347% from last year. Jordon is tendering to buy 100,000 tonnes of optional origin wheat. India wheat production for 2012 is still estimated at a record high 90.23 million tonnes from 86.87 million last year and compared with India consumption which is thought to be near 76 million. The Commitments of Traders reports as of April 17th showed Non-Commercial traders were net short 55,550 contracts, an increase of 7,013 contracts for the week. The selling trend from fund traders is seen as a short-term negative force but the net short position is getting close to the record 60,698 contracts hit in mid-January. Commodity Index traders held a net long position of 225,869 contracts, up a significant 6,798 contracts for the week.
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