The wheat markets are mixed as of 7:30 am cst. Chicago wheat is down slightly, Kansas City is down 3 to 4 cents, while Minneapolis spring wheat is showing 5 to 6 cent gains. Paris Matif Wheat is trading down 1% near 227 Euros but consolidating in yesterday's range. The US Dollar is providing resistance after Germany reported their 4th consecutive monthly rise in unemployment. The Euro sank on the news and is sending negative sentiment through the market. After forging another new high yesterday, September wheat traded steady overnight and is consolidating within yesterday's range. Minneapolis wheat continues to gain on Chicago and Kansas City wheat after Stats Canada estimated Canadian wheat seeding at 23.8 million acres. This was slightly lower than trade forecasts but exceeded last year's seeded area of 21.5 million acres. The Minneapolis vs. Kansas City September wheat spread is trading 6 cents higher this morning near +81 the Minneapolis contract. While wheat continues to make new highs day after day, the upside may be limited to corn's progress from here. The rally in corn along with the acreage and production cuts around the globe (Argentina, Canada, and Russia) has quickly made the U.S. the home of the most expensive wheat. The emotion in the wheat market has been subdued following yesterday's announcement that Tunisia and Jordan bought Black Sea wheat for September and October shipment. The market is suddenly coming to the realization of just how expensive U.S. wheat has gotten over the last two weeks, courtesy of the explosive corn market. The U.S. did sell 25,500 tonnes of milling wheat to a S. Korean flour miller overnight, but this will likely be overlooked due to the size of the tender and regularity of the business. The Russian spring wheat territory is still at risk of production downgrades due to dry weather, but the forecast does call for a better chance for rainfall next week. The market should receive more evidence of slowing export sales when the USDA releases their updated export sales report today. Last weeks sales were 842,000 tonnes and it is unlikely that we will see that sort of strength today. The USDA will also release their Grain Stocks and Planted Acreage report on Friday. Traders are expecting June 1 stocks near 720 million bushels vs. 862 million bushels on June 1, 2011. The trade also expects all wheat planted acreage near 56.6 million acres. This would be slightly higher vs. the March forecast of 55.90 million acres. Traders also expect spring wheat planted acreage to increase by 500 to 700 million bushels. The March report estimated planted acreage at 55.91 million acres.
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