July wheat was 3 cents higher overnight. The dollar was lower.

The July wheat contract has remained well within Monday’s big trading range so far this week. Traders indicate that the wheat market is finding support from a demand-led rally in corn. They noted that a lower dollar overnight is also lending support. Traders note that commodities in general may benefit from a firming demand outlook, along with a retreat from the risk aversion that has accompanied the recent debt crises in the Euro-zone.

Wheat has lagged recently on the demand side with the last two weekly Export Sales reports showing a total below the average needed each week to reach the USDA’s export projection for the export marketing year. The USDA will release its latest weekly report this morning. Sales need to average 274,100 tonnes each week to reach the USDA’s projection.

Heavy rains are expected across much of the US soft red wheat belt starting tomorrow and running into the weekend. This rain is not needed as soil moisture levels are already adequate-to-surplus in most areas. One analyst noted that this unwelcome rain may be taken in stride by the developing crop, although he noted that additional forecast rains next week could start to cause some quality concerns.

July wheat started the day session on a positive note yesterday, but early strength attracted selling that pushed the July contract lower through late morning. This was followed by a final round of new lows for the day in early afternoon. Tomorrow is First Notice Day for the May wheat contract.
Bron:CME