July wheat traded 4 1/4 cents higher in overnight action. The dollar was lower again overnight and crude oil was higher.

Wheat was relatively strong yesterday in the face of a lower corn market and a sharply lower soybean complex and rice market. The strong close in wheat was followed by higher prices in the overnight session, with traders citing a lack of sellers as a main feature. The tender calendar is getting busier for wheat, with Pakistan announcing two tenders for a total of 250,000 tonnes today. The Baltic Ocean Freight Index hit a new record high yesterday. Traders are concerned that this will make new crop wheat from the EU and Black Sea much cheaper for buyers in North Africa who will not be interested in paying for the cost of transportation all the way from North America. Traders report that Ukraine has offered its first new crop wheat for sale at Black Sea ports. Ukraine is expected to produce as much as 19 million tonnes this year as compared with last year's weather-reduced crop of 13.9 million tonnes. This week's Export Sales Report showed net sales of 120,700 tonnes in old crop and 443,600 tonnes in new crop. Sales of 227,200 tonnes are needed each week to reach the USDA old crop projection. Total sales to date stand at 98.0% compared to a 5-year average of 95.5%. Hard red wheat (KC) sales were heavy for next year but near zero for the current marketing year. Soft red (Chicago) sales were heavy at 124,400 tonnes for the current marketing year. Japan and Mexico were the week's biggest buyers. Improved weather in the US has traders expecting improving crop conditions ahead of the harvest. RICE: Reports from India indicate concern that farmers might switch some acreage from the winter rice production into oilseeds due to higher taxes on rice exports. The winter crop is just a fraction of total Indian production, but the south and Southeast Asian rice export market may be very sensitive to diminished supply from one of the major exporters.

Moderate to heavy rains fell over the past 24-36 hours in east Texas, Louisiana, Mississippi, central Missouri and central and southern Illinois with light to moderate amounts in the southern Plains and mostly light amounts in the southern and eastern Midwest. Most growing areas were fairly dry in the late overnight period. The forecast is remaining somewhat dry into the weekend, but the big news is that the cool temperatures that had been forecast for most of the Midwest seem to be retreating into the upper and eastern Midwest. Forecasters are now calling for above normal temperatures in all growing areas after May 21 with highest temperatures centered just to the south and west of Chicago. Pakistan announced two tenders today, one for 175,000 tonnes of wheat and the other for 75,000 tonnes. The closing date for bids is June 7. Jordan is tendering for 100,000 tonnes of hard wheat from any origin with a deadline of May 28th. Iraq is tendering for at least 50,000 tonnes of wheat earlier this week. After their last such tender they ended up buying 450,000 tonnes.