May wheat was down 13 1/2 cents late in the overnight session. Outside market forces looked somewhat positive overnight, but commodity markets appeared to be under pressure from long liquidation. A slightly wetter forecast for the central plains for the 6-10 day outlook and some light rains this week have helped encourage more long liquidation selling overnight. The weekly crop condition reports from hard red winter wheat states were mixed. Kansas crops were rated 27% good to excellent, up 1% from last week. Oklahoma was down 3% to 24% good to excellent, and Texas crops slipped 4% to just 14% in the good to excellent categories. May wheat ended slightly lower on the session yesterday with an inside trading session. Traders see the grain markets as vulnerable to speculative long liquidation selling if support levels are violated. Rains in China were seen as beneficial to the crop and helped to pressure the market. A turn lower in the other grain markets helped to pressure the wheat market yesterday it opened strong. Outside market forces were positive, but talk that the two-day surge late last week left the wheat a bit overbought helped to spark some light long liquidation selling. The selling continued in the overnight session. Weekly export inspections, released during the session yesterday, came in at 25.7 million bushels. This was above trade expectations and this may have helped provide some underlying support. Inspections need to average 31 million bushels each week to reach the USDA projection for the 2010/11 marketing year. Updated weather models are showing a little wetter weather for central Kansas and Nebraska in the 6-10 day outlook. Iraq is tendering to buy 100,000 tonnes of wheat from any origin. Japan seeks 103,125 tonnes at their regular weekly tender. Sudan is still tendering for 300,000 tonnes of wheat, and Jordon is in the market for 100,000 tonnes.

Bron: CME