July wheat was 1/4 of a cent lower overnight. The dollar index was modestly higher.

Wheat rallied yesterday on short covering and some buying by funds, but it lagged behind more powerful surges in corn and soybeans. Traders said that wheat may have lagged due to its greater sensitivity to yesterday’s higher dollar as well as a disappointing export sales total in wheat. Net sales for wheat came in at 101,100 tonnes for the current marketing year and 310,800 for next year for a total of 411,900. Soft red sales were only 5,100 tonnes for the current marketing year and 18,500 tonnes for next year. As of April 8, cumulative wheat sales stand at 91.5% of the USDA forecast for 2009/2010 versus a 5 year average of 94.4%. Sales need to average 260,000 metric tonnes each week to reach the USDA forecast.

Light rains moved through the SW Plains yesterday and on into Kansas and eastern Nebraska. Heavier rains are moving up from the south into central Texas today with light to moderate totals expected in adjacent areas. This system is then expected to move up into Oklahoma and parts of Kansas into the weekend, with the heavier totals possibly lingering in central Oklahoma into Sunday. Traders said that early buying by funds and strength in corn and soybeans outweighed the negative effects of a higher dollar and weak export sales for the wheat market yesterday. Other news is light ahead of the weekend. Indonesia bought 15,000 tonnes of Black Sea origin wheat for arrival in July.
brob ; cme