July wheat traded 16 1/2 cents higher in overnight action. Outside markets were higher. The dollar was also higher overnight.

A very strong day yesterday was followed by a sell off into the close. Overnight action was again substantially higher. Traders indicate that buying has come mainly on short covering ahead of this morning's Supply and Demand and Production reports. The results of these reports should set the tone for the market today. Yesterday's export sales numbers were also supportive according to traders. Weekly exports sales for wheat, released before the open yesterday, came in at 178,800 tonnes for old crop and 312,900 for new crop. Sales of 167,700 tonnes are needed each week to reach the USDA's export projection. Total sales to date stand at 98.0% of projected exports compared to a 5-year average of 95.3%. Sales were good for both hard red and soft red wheat with no featured buyers. In Australia, forecasters still call for dry weather in eastern and southeastern wheat growing areas over the next 7 days. The next chance of rain may be during the subsequent 7 days. Tunisia bought 109,000 tonnes of wheat yesterday to complete a tender announced earlier this week. Deliveries against the May wheat contract were only 52 contracts. RICE: Malaysia bought 500,000 tonnes of rice from Thailand yesterday in a move that helped push the market to a limit up close in the July contract. Devastation in Myanmar is still said to be the underlying cause for strength in rice. Deliveries against the May contract today were 11 contracts.

Substantial rains fell yesterday in the southern Plains centering on Oklahoma. This included more coverage to formerly dry areas of the Texas Panhandle. The eastern edge of the Plains should see further rains today, along with most of Missouri and western Iowa. The 6-10 day outlook calls for temperatures of at least 5 degrees below normal for virtually all of the hard red belt and most of the soft red belt with the exception of the southeast. A portion of the east central Plains could be 10 degrees or more below normal. Long range rainfall looks to be mainly in soft red areas. Iraq bought 300,000 tonnes of US wheat this week. For the second week in a row, Japan will not tender for wheat this week due to national holidays. Their next scheduled tender will be next week. Bangladesh is tendering for 100,000 tonnes of wheat for June delivery.