May wheat was down 4 cents late in the overnight session. Outside market forces look negative today with a higher US dollar and concerns for further tightening measures from China. The market pushed lower again overnight to its lowest level since March 31st. Improving weather prospects for the dry hard red winter wheat areas and ideas that the market faces a bumper soft red winter crop has helped to pressure the market into closing lower for three sessions in a row. In addition, traders expect the US to see increasing competition from India and possibly the Black Sea region. Facing burdensome beginning stocks and a record or near record harvest, Indian officials are expected to allow additional exports of up to 10 million tonnes of wheat and rice. Even western Kansas is expected to receive badly needed rain in the next few days, and dry areas of Oklahoma and Texas may see some rains next week. A late rally in new crop corn helped Chicago wheat bounce off of the early lows yesterday, but the market still closed moderately lower on the session. The outlook for rain had helped drive the market sharply lower on the session earlier. July Kansas City wheat led the market down and closed 21 1/4 cents lower on the day, as the rain is expected to help improve hard red winter wheat conditions most. Weekly export sales for wheat, released before the open yesterday, came in at 443,600 metric tonnes for the current marketing year and 102,000 for the next marketing year for a total of 545,600. Cumulative old crop wheat sales stand at 98.8% of the USDA forecast for 2010/2011 marketing year versus a 5 year average of 93.8%. Sales of only 53,000 metric tonnes of old crop wheat are needed each week to reach the USDA forecast. The EU granted export licenses for 198,000 tonnes of soft wheat this week, which pushed the cumulative export total for the year to 15.9 million tonnes. This compares with 14.1 million tonnes last year at this time. News that the US dollar moved down to the lowest level since November 2009 may have helped support the market late in the day yesterday, but the dollar moved higher overnight. India has won a tender to sell 50,000 tonnes of wheat to Bangladesh. Tunisia bought 25,000 tonnes of soft wheat from their tender for 50,000 tonnes. Jordon is still tendering to buy 100,000 tonnes of wheat.