July wheat was trading 2 3/4 cents lower late in the overnight session and the market matched Friday's contract low. Outside market forces look bearish again today with lower equity, energy and metals trade overnight and a bounce in the US dollar. There was 1 delivery this morning against the May wheat with the total for the month at 411. The market has seen aggressive selling from fund traders in the last three sessions and the COT report showed that funds already held a hefty net short position. The USDA reports did not have much in the way of bullish news and showed ample world and US ending stocks. However, stocks were tightening at both levels, traders remain nervous over the FSU production and the US weather was not as bearish as expected. Parts of the western plains missed out on rains this past week which will leave crop conditions showing a slight deterioration for this afternoon and likely for the week ahead. The outlook calls for near excellent weather to get the spring wheat crop planted. FSU total production is expected at 97.76 million tonnes for the 2012/13 season as compared with 114.4 million this past season. As a result, traders are a bit more optimistic over US exports. Wheat is also cheap relative to corn which could help boost feed usage. July wheat closed 4 1/4 cents lower on the session Friday and down 12 1/2 cents on the week. The market pushed to a new contract low and a new contract low close as the steep sell-off in the other grains, especially soybeans, helped to pressure. Excellent weather for advancing the winter wheat crop to maturity and an excellent start to the spring wheat crop helped to pressure the market. July KC wheat pushed to new lows for the move and closed 7 1/2 lower and right near the lows. July Minneapolis wheat closed lower for the ninth session in a row and also pushed to a new low for the move. Ethiopia is tendering to buy 35,000 tonnes of milling wheat. The Commitments of Traders reports as of May 8th showed Non-Commercial traders were net short 45,005 contracts, an increase of 17,058 contracts for the week and the selling trend is seen as a short-term negative force. However, the net short is near a historic high so the market is considered oversold. Non-Commercial and Nonreportable combined traders held a net short of 71,833 contracts, up 19,833 for the week. Commodity Index traders held a net long of 215,341, up 219.