July wheat was trading 6 3/4 cents lower late in the overnight session. Outside market forces look slightly negative today with some strength in the US dollar and a weaker tone to equity markets. There were no deliveries against the May wheat this morning with the total for the month at 55. Traders continue to push up winter wheat yield and production estimates and while it appears that more wheat will be used for feeding livestock this spring, there does not appear to be any tightness concerns. The lack of a US whether threat, improving spring wheat production outlook in the US and talk of better rain chances for Eastern Europe and the Black Sea region are all factors which have helped to pressure the market this week. July wheat opened slightly lower and closed sharply lower on the session yesterday with aggressive fund selling noted late in the day. The market experienced the lowest close since September 14th of 2009. Traders see very high yield potential for the winter wheat crop and the weather outlook suggests improving crop conditions ahead. A strong US dollar and weakness in energy, metal and equity markets added to the bearish tone. Crop tour participants in Kansas see record yield potential and the spring wheat crop is off to an excellent start. July KC wheat took out the April lows to move to a new low for the move. Minneapolis July wheat fell sharply and pushed to the lowest level since November 26th of 2010. Iran bought 60,000 tonnes of wheat from Australia and Lebanon is tendering for 50,000 tonnes of milling wheat.
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