May wheat traded 17 cents higher overnight. Outside markets and grains are mixed this morning.

Prices recovered overnight from yesterday's late break, spurred in part by a one percent gain in Asian markets. Export demand continues to come into the world wheat market. Egypt's state buying agency, GASC, said late yesterday that it wants to buy 55-60,000 tonnes of a number of wheat classes from a wide number of potential sources. It is also seeking 30,000-60,000 tonnes of wheat from Russia, Syria or the UK. KC lost substantial ground to Chicago in the nearby May contracts yesterday, and it lost further ground overnight. Floor traders said that funds were sellers in wheat of at least 2000 contracts yesterday, despite buying elsewhere on the floor. With the exception of very light precipitation in the north central Plains, the entire hard red wheat belt was dry over the past 24 hours. Dry weather is forecast again for the western hard red wheat belt over the next 6-10 days, with better conditions in eastern hard red growing areas. Turkey cancelled its long awaited tender for 250,000 tonnes of wheat yesterday, and that weighed on the market early. They are expected to retender later.

The eastern half of the soft red belt is expected to be dry over the next 6-10 days. Dry weather is expected to last into the weekend in most areas of the hard red belt. There is still no important cold weather in sight for the Plains. Egypt is in the market for 55,000-60,000 tonnes of a number of wheat classes and it is seeking an additional 30,000-60,000 tonnes of wheat from Russia, Syria or the UK. Iraq is in the market for 50,000 tonnes of hard wheat from any origin. Bangladesh is still in the market for 50,000 tonnes.

Weekly export sales for wheat, released before the open, came in at 379,900 metric tonnes for the current marketing year and 182,900 for the next marketing year, for a total of 562,800.