May wheat was up 21 cents late in the overnight session. Outside market forces look more stable and a bit positive this morning. An overnight jump of 5% in European milling wheat futures overnight helped to support recovery in US futures. The market had seen a massive break off of the Japanese disaster, and there was a sense that the selling had gotten overdone. The market collapsed yesterday under the weight of aggressive long liquidation selling, and May wheat traded to their lowest level since last July. At the low point, May wheat had fallen as much as 27.7% from the February highs. Ideas that the global economy could slow while Japan rebuilds and that short-term movement of commodities into Japan could slow helped to pressure the market on its break. Uncertainty regarding radiation leakage has added to the tendency for traders to exit longs and stand aside. The state-by-state crop condition updates in the US showed some improvement for the Kansas crop this week, with 26% rated good to excellent versus 25% last week and 63% last year at this time. Oklahoma wheat improved by 5% to 27% good to excellent. Traders see little or no rain in the forecast for the western part of the plains in the next two weeks, with some talk of less than 1/4 inch for the western Kansas region. There is some rain called for in the eastern plains. In addition, temperatures will be on the rise with talk of temperatures into the 90’s. This may stress crop conditions in the western parts of Kansas and Oklahoma. Sudan is tendering to buy 300,000 tonnes of wheat, and Jordan is still tendering for 100,000 tonnes. Bangladesh is tendering for 50,000 tonnes, and Japan bought 28,135 tonnes at their weekly tender.

Bron: CME