December wheat finished 3 1/4 cents lower overnight.

Wheat broke sharply yesterday in what traders said was sympathy with sharply lower grains and crude oil. Funds were sellers in wheat of at least 4,000 contracts, according to floor traders, although this was less heavy than fund selling in corn and soybeans. Wheat finished near its lows yesterday and traded moderately lower overnight, again finishing near the lows. Rains in recent days and into next week should bring relief to most spring wheat areas. However, unneeded rains are also expected in hard red harvest areas today and tomorrow and on Saturday and Sunday in soft red areas. Tunisia bought 25,000 tonnes of wheat in a scheduled tender yesterday that reflects continued strong demand activity on the wheat tender calendar. The USDA also released its weekly Export Sales Report yesterday, and it was again above trade expectations. Net sales were 748,600 tonnes, which was well above the weekly total needed to reach the USDA projections. Sales of 357,700 tonnes are needed each week to reach the USDA projection for the current marketing year. Total sales to date stand at 39.0% of the projected total for the marketing year compared to a 5-year average of 24.8%. Talk of record world wheat production and especially the jump in production from key exporters in Eastern Europe, Canada and Australia continues to provide a negative tone to the market.

Hard red harvest areas should see widespread rains today and tomorrow, with soft red areas seeing moderate to heavy rains pushing in gradually from the NW today through Sunday. Temperatures should be seasonably warm to slightly above normal in most winter wheat harvest areas into next week. Spring wheat growing areas should see welcome rains on and off in most areas through next week, although coverage in the extreme west may be spotty. Iraq has issued yet another tender for 50,000 tonnes of wheat. Algeria is tendering for 50,000 tonnes of wheat. Egypt is tendering 55-60,000 tonnes of optional origin wheat for delivery during mid-August. Pakistan is tendering for 250,000 tonnes of wheat. Jordan issued a tender for 100,000 tonnes of wheat late last week. Oman is in for 120,000 tonnes at the end of July.