July wheat was trading 9 cents higher late in the overnight session. Outside market forces look somewhat supportive with a bounce in equity markets. Short-covering emerged overnight with a slight recovery in outside market forces and crop deterioration helping to support. The weekly winter wheat conditions report showed that 60% of the crop was rated in good/excellent condition compared to 63% last week and 32% last year. The 10 year average for this time of year is 47%. Kansas crops saw a drop to 52% good/excellent from 60% last week. The weekly spring wheat planting report showed 94% of the crop is planted compared to 84% last week and 33% last year. The 10 year average for this time of year is 69%. The previous fastest planted crop was 92% complete in 1987. July wheat closed slightly higher on the session yesterday with an inside trading session. Bearish outside market forces clashed with talk of the oversold condition and talk that the recent set-back in prices could attract increased demand. A bearish tilt to outside market forces with financial problems in Europe and political issues in Greece and Germany helped to drive the US dollar higher and other commodity markets lower. Ideas that the market is oversold and talk that the market has already priced-in a large crop ahead helped to support the bounce to higher on the day. Weekly export inspections came in at 28 million bushels which was well above trade expectations and compares with 20.7 million bushels per week to reach the USDA projection. May 1st stocks of wheat in India reached 38.2 million tonnes which is more than 9 times higher than the official June 30th target of 4 million tonnes as compared with 19.9 million tonnes last month. The head of the grain union in Kazakhstan indicates that the country will export around 3 million tonnes of wheat and 1 million tonnes of flour equivalent between now and September 1st.
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