July wheat 1 1/2 cents lower in overnight action. Outside markets were lower and the dollar was higher overnight.

Wheat traded in a very narrow range yesterday and was slightly lower overnight. Traders indicate that the market is under pressure due to improved weather in the hard red wheat belt and the approach of the winter wheat harvest. Both hard and soft red crops are expected to be higher this year, and crop conditions have generally improved in recent weeks, although this is not reflected on the latest Crop Progress Report. This week's reports showed that the good-to-excellent category remained unchanged overall at 47%, although Oklahoma saw a 2% increase in that category and Kansas actually saw a 1% drop. The 10 year average for this time of year is 52%. The highest percent rated good/excellent was 77% in 1993 while the lowest was 23% in 1989. The weekly spring wheat planting report showed 81% complete compared to 82% last year. The 10 year average for this time of year is 71%. Deliveries against the May contract today were just 17 contracts. RICE: The market finished lower yesterday. Reports from Vietnam suggest that local stocks of rice are growing amid declining prices, and that this is bringing pressure for that country to resume exports. In an extraordinary move, Japan has said that it will sell 50,000 tonnes of rice to the Philippines. Such sales by Japan are very rare. Deliveries against the May contract today were just 5 contracts.

Showers are expected today across most of the central and southern Plains, with rains on Thursday expected across the southern half of the Plains. In soft red areas rain is expected tomorrow in some areas of the west, with a mostly north/south band hitting Illinois and Indiana and down into Arkansas on Wednesday. Rains should shift to the southern soft red belt on Thursday. Iraq has issued another tender for 50,000 tonnes of wheat. After their last such tender, they bought 450,000 tonnes. Japan reenters the market this week after standing aside for two weeks due to national holidays.