May wheat was down 22 cents late in the overnight session. Outside market forces looked bearish with a strong US dollar and sharply lower equity markets overnight. Deliveries against the March contract came in at 71 contracts. Demand concerns persist, and the market’s focus is on Japan and not the growing conditions in the US or other areas. Long liquidation selling was active overnight to drive May wheat to its lowest level since November 17th. It closed slightly higher on the session yesterday after closing lower for every session last week. The market had an inside trading session yesterday, as general economic uncertainty plus some talk that wheat exports to Japan could slow helped spark early weakness. However, a turn higher in new crop wheat plus talk of dry and warm weather for the western and southern sections of the winter wheat belt helped to support the bounce to the highs of the day into the mid-session. Some areas of the eastern plains received rain and snow over the weekend. The forecast remains somewhat threatening, with a warm and dry trend for the western Kansas region considered a threat. Kansas weekly crop conditions came in at 26% good to excellent from 25% last week and 63% last year at this time. The state reported that topsoil moisture was 17% very short and 25% short. Weekly export inspections for wheat came in at 25.7 million bushels, which was above trade expectations but below the 30.87 million bushels necessary each week to reach the USDA export forecast for the season. Jordan is tendering for 100,000 tonnes of wheat. Bangladesh is tendering for 50,000 tonnes of wheat, and Japan is tendering for 32,381 tonnes at their weekly tender.

Bron: CME