July wheat was trading 10 1/2 cents lower near 7:30 am cst. Outside market forces look bearish as poor economic news in China, the US and then the US sparked an aggressive sell-off in the stock market. There is some underlying support for the wheat market from ideas of tightening US and world ending stocks for the June supply/demand update and from uncertainty for the Black Sea region production but outside market forces are still dominate. Fund selling in wheat is likely new short positions as the May rally drove shorts out of the market. Harvest is ongoing for the winter wheat crop and yields are variable. Spring wheat areas look favorable for continued early development. July wheat closed lower yesterday and pushed to the lowest level since May 17th on further weakness overnight. Outside market forces turned sour with a rally in the US dollar and a break in energy and equity markets into the pit opening yesterday as the market was trading just a few cents lower on the day early. Even a recovery to higher on the day in the stock market failed to provide much support. Talk of decent yields for the winter wheat harvest and ideas that the US dollar rally is slowing export demand and that the wheat premium over corn is lowering feed demand were factors which may have contributed to the weakness. The EU granted export licenses for 178,000 tonnes of wheat this week which pushed exports for the season to 12 million tonnes from 17.7 million last year at this time. Strength in corn has helped to provide some support but a sharp break in soybeans and weakness in other commodity markets were seen as offsets. Reports of potential high yield and strong wheat production in China overnight for their summer crop added to the negative tone. Traders see weekly export sales for release in the morning near 425,000 tonnes.