May wheat was down 6 3/4 cents late in the overnight session. Outside market forces looked negative with wheat sensitive to the dollar and the dollar up strong overnight. Deliveries against the March contract came in at just 1 contract overnight to push the total to 4,223. Ideas that even western Kansas can get some rain this week plus less concern for the Chinese crop helped to spark a long liquidation selling trend yesterday. China officials seem to be confident that supply is plentiful, even with a minor problem with the current crop. Japan seeks 135,823 tonnes of wheat at their weekly tender. Wheat basis levels at the Gulf were firm yesterday after news that Iraq bought 300,000 tonnes of US wheat this week. Morocco is still tendering for 280,000 tonnes of milling wheat. The market pushed sharply lower on the session yesterday and had its lowest close since February 24th, as a negative tone for the economy, less concern over China’s wheat crop and an improved weather outlook for the US crop helped to drive the market lower. Talk of increased chances of rain for the central plains this week plus some chances of a little rain in the western plains helped to pressure the market. In addition, speculators turned active sellers with the turn lowwer in the stock market, and weakness across other agricultural markets helped to pressure prices. Weekly export inspections, released during the session yesterday, came in at 21.44 million bushels which was slightly below trade expectations and was below the 19.58 million reported last week. Exports need to average 32.4 million bushels each week to reach the current USDA projection. Ideas that China has plenty of wheat in storage to guard against any problems with their winter crop added to the negative tone. In addition, Egyptian officials indicate that they have at least 5 months of supply on hand and are pursuing a normal buying pace ahead.

Bron: CME