September Chicago wheat is trading 8 cents higher near 7:30 am CST. Kansas City and Minneapolis wheat are trading slightly higher as well. Wheat markets saw a steady to higher trade overnight as traders await the results of another Egyptian tender which was released late yesterday afternoon. The November Matif Milling Wheat contract is trading marginally higher. European markets opened slightly stronger overnight after better than expected economic data was reported out of Germany and France. The favorable data was offset after Eurostat released a report showing the Euro Zone economy shrank in the April-June period by.2% when compared to the previous quarter. The estimate was in line with trader estimates and sent the US Dollar lower in early trade. US Stocks are set to open slightly higher while crude oil saw gains after yesterday's declines. The wheat market was able to bounce overnight on follow through from a slightly stronger corn market. Steep declines yesterday were in large part due to the realization of just how uncompetitive the US is in the world wheat market at this time. Egypt booked it's first wheat tender since April at a steep discount to the cheapest US offer. The market slide sharply lower on the news which then enticed Egypt to tender yet again yesterday afternoon for an unspecified amount. The results will be released today but the market is anticipating the business to be done by Russia again. Algeria issued a tender to buy 50,000 tonnes of optional-origin milling wheat for September-October shipment, Taiwan Flour Millers Association has tendered for 94,250 tonnes of milling wheat out of the US, and India is floating another tender to export a total of 75,000 tonnes of wheat between two different ports. The weekly crop progress report showed that spring wheat harvest is now 65% complete compared to 47% last week and 11% last year. The 10 year average for this time of year is 31%. Spring wheat conditions were reported at 61% of the crop was rated good/excellent compared to 63% last week and 66% last year. The 10 year average for this time of year is 62%. Spring wheat yields and quality continue to be reported as above average. The Weekly Winter Wheat Harvest report showed harvest was 94% complete compared to 88% last week and 88% last year. Hard Red Winter wheat planting will begin very soon and recent rainfall in parts of Kansas and Nebraska have helped top soil conditions slightly, however Oklahoma remains extremely dry. Much more is needed this month and into September as top soil conditions remains above 90% short to very short. There is still time for conditions to improve and the development of El Nino in late August to early September could provide the needed moisture to get new crop planting off to a decent start. Recent rainfall in parts of the Black Sea has slowed harvest somewhat but progress remains steady. Any further dry patterns or extreme heat will likely have no effect on new crop yields as traders begin to monitor yields out of the fields. Reports out of Russia show that yields out of the Volga Valley continue to be half of last year which is in line with local analyst estimates. Russia will remain aggressive with any further export tenders to finish out this calendar yield and will likely reevaluate their domestic supply situation in early 2013. Planting conditions remain a concern as soil conditions are trending drier than normal across most of the Black Sea wheat growing areas.