September Chicago wheat was trading 7 cents higher near 7 am cst. Minneapolis wheat lost to Chicago overnight on intermarket spread profit taking, but still managed slight gains. Kansas City is 7 cents higher. Paris Matif November contract is trading down 0.40% near 228.25 Euros but near the higher end of this week's range. Paris wheat likely saw pressure from a sharply higher trade in the Euro overnight after positive news was reported out of the European Leaders Summit. U.S. commodity markets have rebounded on the news as the U.S. Dollar sinks. The key numbers for the USDA Quarterly Stocks and Planting Intentions report include the Spring wheat planted acreage and all wheat stocks. Traders are expecting June 1 stocks near 720 million bushels vs. 862 million bushels on June 1, 2011. The markets will likely turn higher on any number less than 700 million bushels. On the other hand, the markets will likely turn lower if stocks are reported over 740 million bushels. Traders also expect spring wheat planted acreage to increase by nearly 600 million acres to 12.50 million acres. Minneapolis spring wheat could turn higher on a number under 12.20 million acres and turn lower on a number over 12.60 million acres. Other items include all wheat planted acreage with market estimates near 56.6 million acres. This would be slightly higher vs. the March forecast of 55.90 million acres. Blistering temperatures will be seen in the most of the Midwest today and dry conditions this week will keep winter wheat harvest ahead of schedule on next Monday's crop progress report. Spring wheat conditions could be steady to slightly weaker as it's hard to get much better than 77% good to excellent at this point. Showers are still expected in the northern Corn Belt over the weekend and storm systems are stretching across the western third of Kansas to the eastern half of Nebraska this morning. The 1 to 5 day outlook is mixed with some models showing cooler temperatures and increased rainfall for 70% of the Corn Belt. Wheat saw a supportive trade overnight as outside markets turned positive towards commodities after European leaders reached an agreement on loan conditions to Spanish banks. A large U.S. commercial trader sold 32,000 tonnes of Indian wheat to Indonesia overnight. India wheat production is estimated at over 90 million tonnes. Traders would not be surprised to see a lower than expected stocks number as wheat has been able to make its way into feed wheat channels for much of the year. A lower than expected Spring wheat acreage number could send Minneapolis wheat sharply higher, while dragging Chicago and Kansas City wheat along with it.
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