July wheat was trading 7 3/4 cents lower near 7:30 am cst. Outside market forces look negative today with a stronger US dollar and weakness in equity markets. While the winter wheat crop conditions are deteriorating, the harvest is also advancing and spring wheat looks favorable and this has helped to add to the selling pressure recently. The weekly Spring Wheat Conditions report showed that 79% of the crop was rated good/excellent compared to 74% last week. The 10 year average for this time of year is 71%. The highest percent rated good/excellent was 87% in 1991. The weekly Winter Wheat Harvest report showed 9% complete compared to 3% last week and 2% last year. The 10 year average for this time of year is 1%. The previous highest percent complete was 2% in 2011 so the harvest is on a record fast pace. The weekly Winter Wheat Conditions report showed that 54% of the crop was rated good/excellent compared to 58% last week and 33% last year. The 10 year average for this time of year is 45%. July wheat closed at the lowest level since May 17th as speculative sellers were active yesterday. News of a little better rain coverage for Russia and talk that fund traders are no longer holding a significant net short position in wheat helped to drive the market lower. The COT reports as of May 22nd showed Non-Commercial traders (funds) were net long 4,127 contracts, an increase of 53,185 contracts for the week which represents a change from a net short to net long position. The aggressive short-covering trend was seen as a positive short-term force but short-covering is not normally considered a good foundation for a continued trend. Expectations for increased harvest pressures from the winter wheat crop just ahead and ideas that the spring wheat crop is off to a good start added to the negative tone. Ideas that the global ending stocks outlook is still plentiful plus talk that India wheat may be moving on the world market soon added to the selling pressures. Weekly export inspections came in at 20.46 million bushels which was a bit lower than expected. Exports need to average 15.2 million bushels per week to reach the USDA projection for the year. Russia officials indicate that the drought was only localized this season and that with high stocks, the reduced crop will not dent exportable surplus much with 22-23 million tonnes of exports expected.