July Chicago wheat is trading 13 1/2 cents higher as of 7:30 CDT while the September contract is grinding 12 cents higher. Matif Milling Wheat for November is 1 Euro higher at 213.50 and near its session highs at 214. For outside market forces, energies and U.S. stocks are offering minimal support after yesterday's sharply lower trade Dry weather in parts of Russia and lower world production for 2012/13 remain the topic of conversation among wheat traders. Slightly bullish fundamental forces, mixed with a sense of risk aversion by investors continue to keep wheat supported with short covering trade. Wheat is beginning to create its own front page headlines on an international level. A major banking institution expects wheat production in Australia to decline to 24.5 million tonnes vs. the current USDA production estimate of 26 million. The FSU continues to keep bears nervous with nearly a quarter of the Russian spring wheat crop subject to drastic yield reduction due to lower than normal rainfall and scorching temperatures. Furthermore, the Agricultural Ministry of Argentina has revised their wheat planting intentions to 3.82 million hectares as producers shift to more profitable crops. Of course there is always India, with their 91 million tonnes of wheat available to the world. However, with a delay to the ever important monsoon season and consistently questionable quality of their wheat, the threat of India becoming a major exporter to the world market is minimal, at least in the near-term outlook. While bears point to a U.S. stocks/usage ratio of 29%, the world stocks/usage ratio of 27% is subject to further downward revisions. With the market becoming increasingly concerned with the new crop corn yield potential, there is a reasonable chance that feed wheat demand, which was prevalent throughout the 2011/12 crop year, could be extended further into the 2012/13 crop year. This would be supportive to the world wheat trade and prices going forward.