May wheat was down 14 1/2 cents late in the overnight session. Outside market forces look negative today. The outlook for some rains into Kansas into the weekend and talk of increased chances for southern areas late next week have helped drive the market sharply lower. Many traders believe that one rain event will not turn crop conditions around and that it may be too little, too late for many fields, but the shift to a wetter pattern for the second half of the month appears to be a possibility, and this has helped drive futures lower. Midday weather forecasts yesterday turned wetter for the plains and the Midwest, and especially for the northern third of Kansas. This news helped pressure the wheat market yesterday, led by Kansas City futures, which helped pull down Chicago. The news helped push the market down to a new low for the month to its lowest close since March 30th. Dryness in Europe and continued dry weather in China’s wheat areas are seen as somewhat offsetting factors, with the dry weather now expected to continue in Germany and parts of France in the next few weeks. Tunisia is tendering for 50,000 tonnes of wheat, and Jordan is tendering for 100,000 tonnes. Syria is also in the market for 27,000 tonnes. Traders will monitor weekly export sales this morning for signs of short-term demand. May corn closed at a premium of 2 3/4 cents to May wheat yesterday after briefly trading at a premium for a short time Tuesday for the first time since 1996. This is helping to support ideas of increased feed demand for wheat. There is more talk that India is considering lifting their whear export ban, which has been in place for the past four years. They face large beginning stocks and a record harvest. Japan bought 147,712 tonnes of wheat at their weekly tender.

Bron: CME