September Chicago wheat traded 8 1/2 cents higher near 7:30 am cst. Kansas City led all thee wheat markets higher while Minneapolis gained 9 cents on the night. The Chicago July wheat contract gained on the September contract after no delivery intentions were reported. The Paris Matif November contract is trading 3.75 Euros higher and posted a new all-time contract high at 231.75 Euros. U.S. commodity markets have rebounded, while the U.S. Dollar trades lower after the European Summit last week. Chicago September wheat posted a new high for the move overnight and traded to levels not seen since September 2011. Minneapolis September posted a bullish technical move overnight after it traded above previous highs at 8.50. Wheat is seeing support as commodity markets rebound on supportive outside markets and as the trade revises production estimates for the Black Sea region. Wheat is also being held captive to the corn market on thoughts that wheat feeding may increase due to destructive yield damage to new crop corn. 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 today'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. The Commitments of Traders reports as of June 26th showed Non-Commercial traders were net long 25,681 contracts, an increase of 35,793 contracts for the week which represents a change from a net short to net long position. Non-Commercial and Non-reportable combined traders held a net long position of 4,088 contracts. These traders have also gone from a net short to a net long position as well. Trend following fund traders (Non-commercial net of Index Fund positions) showed an increase of 38,102 contracts which was the largest position change out of all the grains. The net position for these traders now sits at 17,611 contracts short, which is approaching levels not seen since the first half of 2011. The largest long position held since 2006 is 30,146 contracts. This data further illustrates large speculative traders becoming increasingly concerned over the Black Sea balance sheet and depleting supply of wheat for major exporters. The southern districts of Russia remain the most vulnerable areas for production downgrades and the trade now expects the combined crop production for Russia, Ukraine, and Kazakhstan to fall just under 79 million tonnes vs. 81 million tonnes estimated on the June WASDE report. The Institute for Agricultural Market Studies (IKAR) expects Russian wheat production for the 2012/13 season to fall to 48.5 million tonnes. This would be the 2nd lowest production level in the last 5 years and 4.50 million tonnes lower than the current USDA estimate. Major global importers of wheat seem worried over the price trend going forward as Middle Eastern and North African countries begin lining up tenders. Jordan issued a tender overnight to buy 100,000 tonnes of wheat following business done with Tunisia and the Middle East last week. The long term outlook for wheat is friendly as the U.S. finishes off a successful winter wheat harvest and export capacity and 2011/12 carryout puts the U.S. in a competitive advantage in the world market.