September Chicago wheat is trading slightly lower overnight after posting a new high for the move. Kansas City and Minneapolis contracts are higher on the day, extending their gains against Chicago wheat. The lower trade this morning is linked to profit taking after corn fell from it's overnight highs. The November Paris Matif contract is trading slightly lower this morning. Outside markets are providing a slightly positive tilt with stocks set to open higher and the US Dollar trading lower. Chicago wheat traded sharply lower this morning after the corn market failed to extend it's gains from 5 pm yesterday. Paris Wheat made a new high for the move but followed US markets lower in the early hours. US weather and corn conditions remain the driving force in the wheat market. A continuation of warm and dry US weather will force US corn yields lower and promote a greater use of feed wheat in the coming year. Wheat is also seeing support from a production concerns in the Black Sea. Russia's Farm Ministry sees Russia's wheat crop at 45 million tonnes vs. the current USDA estimate of 49 million tonnes. Bulls should take notice of this revision as it's surprising that government officials made the announcement. A 45 million tonne Russian wheat crop would be just 3.50 million tonnes more than 2010/11. Any further deterioration in the Russian wheat crop will cause the market to question whether export restrictions will be put in place, as this has been the case in the past. The forecast calls for 94-104 degree temperatures for The Volga Valley, Urals, and Kazakhstan before relief is seen next week. This will add stress to spring wheat areas and support the already firm cash price levels in Russia. Crop conditions in Western Europe are supporting the Paris Wheat market after it was reported that just 3% of the French soft wheat crop was harvested as of July 9th vs. 47% a year ago. Heavy and untimely rainfall has not only caused the delay of harvest, but potentially a major quality disaster for some areas. Some commodity houses have written off the United Kingdom's wheat crop due to higher levels of fungal disease and if the rains don't back off soon, Northern France and Ireland could be next. The low quality wheat will likely move into feed channels; if acceptable. The US spring wheat crop continues to progress ahead of schedule and the weekly spring wheat conditions report showing 65% was rated good/excellent compared to 66% last week. The 10 year average for this time of year is 65%. The spring wheat crop is 94% headed vs. 88% last week. US spring wheat harvest should begin in early August. US exports remain slow as major importers pull back tenders until prices stabilize or move lower. Importers in the Middle East and North Africa seem to have sticker shock after watching wheat rally to new highs. A group of Israeli private importers have issued a tender this morning to purchase 60,000 tonnes of feed wheat for late August to early October delivery.