July wheat was trading 5 1/2 cents higher late in the overnight session. Outside market forces look positive today with a weak US dollar and strength in energy and equity markets. Ideas that the eastern Corn Belt will not be cold enough far enough south to cause much damage to the soft red winter wheat crop was seen as the key reason for the late sell-off in wheat yesterday. The market also followed corn lower. Fears of mad cow influence on feed helped drive corn lower and this was also seen as a negative force. In addition, Canadian wheat planted area was pegged at 24.3 million acres, up 13% from last year and about 1 million acres above trade expectations. May wheat closed slightly lower on the session yesterday after trading as much as 14 1/4 cents higher early. A positive tilt to outside markets and cold weather concerns for the weekend and early next week for crops in Illinois, Indiana and Ohio helped to support active buying and more short-covering in wheat. This pushed the market to the highest level since April 13th with July wheat now up as much as 37 3/4 cents from last weeks lows. With a large amount of the crop in the heading stage, freezing temperatures are still a threat to production. A smaller Ukraine crop estimate added to the positive tone with production for 2012 expected in the 11-14 million tonne range as compared with 22.3 million tonnes last year. Crop conditions declined slightly and spring wheat progress remains on a record fast pace. July Minneapolis wheat closed down 8 1/2 cents with the fast planting pace for spring wheat helping to pressure. A private forecaster in Europe pegged German wheat production at 22.2 million tonnes this year from 22.7 million last year. The market is beginning to view the May production report with an eye on big yield and production estimates for the winter wheat crop. Saudi Arabia is tendering to buy 440,000 tonnes of hard wheat for July to September arrival.