May wheat was down 1 1/4 cents late in the overnight session. Outside market forces look a bit positive today with a weaker US dollar. Deliveries against the March contract came in at 436 contracts. Some talk of some light rains for part of the dry western plains in the US and the continued decline in the drought areas of China remain as negative short-term forces. European wheat prices are lower this morning on concerns that funds will be sellers due to China’s rains and concerns that Libya tensions will spread. South Korea is tendering for 55,000 tonnes of feedwheat. Japan is looking for 129,094 tonnes at their regular tender. Morocco and Iraq are still tendering for 280,000 and 100,000 tonnes respectively. The wheat market failed to follow the other grains higher yesterday and closed moderately lower on the day. Talk of some light moisture for western Kansas and Western Oklahoma may have kept buyers on the sidelines, but many traders believe that there is not enough rain (only 1/4 to 1/2 inch for the next few weeks) to reduce dryness concerns. The market opened higher yesterday, finding support from higher soybean values and talk of deteriorating crop conditions ahead of the key growing season for the hard red winter wheat crop. However, a turn down for outside markets and a sell-off in soybeans helped spark selling pressure into the mid-session. At a grain conference, a UK Grain official indicated that Russia could produce a grain crop of 86 million tonnes this year, which would leave room for exports of 7-10 million tonnes. As of the end of February, the Kansas crop was rated just 25% in good to excellent condition, compared with 53% last year. The poor to very poor reading is 40%. In Oklahoma, just 19% is rated good to excellent versus 60% last year, with 42% rated poor to very poor. In Texas, 18% is good to excellent against 46% last year. 56% of the crop is rated poor to very poor. China’s Agriculture ministry indicates that rain and snow since Friday has significantly relieved drought conditions.

Bron: CME