July wheat was 2 1/4 cents higher overnight. The dollar index saw a massive sell off overnight following the announcement of a comprehensive debt relief package for troubled nations in the Euro-zone. Deliveries against the May wheat contract totaled 119 contracts this morning with the total for the delivery period so far at 3,603.

Wheat posted a very modest bounce overnight despite a massive break in the dollar. Traders indicate that this reflects the continued sluggish demand for wheat along with a mostly favorable outlook for all classes of wheat in North America this year. The USDA will issue its latest production estimates for the 2010/11 season tomorrow morning. Traders are looking for a drop of about 70 million bushels in the winter wheat crop from the USDA’s May estimate of 1.502 billion bushels. Last year’s winter wheat crop stood at 1.523 billion. All wheat is expected to be up about 20 million bushels from May’s estimate of 2.026 billion.

The Commitments of Traders report for the week ending May 4th showed net buying by funds. Trend-following funds were net buyers of 5,029 contracts to decrease their big net short position to 50,306. Index funds were net buyers of 3,721 contracts. Non-Commercial traders were net short 26,966 contracts, a decrease of 4,613 contracts. Commercial traders were net long 49,244 contracts, a decrease of 3,312 contracts. The Nonreportable traders were net short 22,278 contracts, an increase of 1,301 contracts. Non-Commercial and Nonreportable combined traders held a net short position of 49,244 contracts. This represents a decrease of 3,312 contracts in the net short position held by these traders.

More unwelcome wet weather is expected this week with the heaviest amounts ranging from eastern Iowa through northern Illinois and most of Indiana and Ohio tomorrow. A brief bout of heavy rain is also expected in Arkansas and into western Tennessee and Kentucky by tomorrow.
Bron:CME