July wheat was trading 5 3/4 cents higher late in the overnight session. Outside market forces look slightly positive this morning with a recovery in the US equity market and some strength in gold. In last week's supply/demand update, the USDA sees lower ending stocks for the US and lower for the world for the 2012/13 season as compared with the 2011/12 season. While lower, traders viewed the stocks as adequate. However, talk of quickly deteriorating western plains wheat conditions ahead of harvest and also increased concerns that the minor rain events this week in Ukraine and Russia were not enough to shield the crop from a hot and dry outlook for next week has helped to spark an aggressive short-covering trend in wheat. July wheat closed sharply higher on the session yesterday and with the run up overnight, the market is up as much as 71 3/4 cents from Monday lows. A lack of rain in the forecast for the western plains in the next week or more and a heat-up in temperatures plus increased crop concerns for the Black Sea region wheat producers helped support. Talk that Russia is likely to drop their grain production forecast by 2-3 million tonnes soon helped to support. Dry Australia weather is keeping the planting pace slow and also has provided some support. In addition, private estimates for the European wheat crop have slipped to 122.7 million tonnes this week from near 133 million earlier this year. Net weekly export sales for wheat came in at 321,800 metric tonnes for the old crop season and need to average 23,000 tonnes per week to reach the USDA forecast. On top of the weekly exports, the USDA reported a sale of 100,000 tonnes of US hard red winter wheat to Iraq for the 2012/13 season. Argentina officials pegged the 2012/13 wheat planted area at just 4 million hectares and some private traders see even lower plantings. For 2011/12, the USDA had 5 million hectares harvested. Jordan is tendering to buy 100,000 tonnes of milling wheat.