Overnight trade took wheat 3-4 cents higher on concerns about the EU crop quality declining due to excessive wetness. U.S. weather patterns are showing hot, dry conditions will settle in for the next couple weeks, with chances for above normal precipitation moving into E. CO and W. KS in the 11-15 day range. Harvest progress should ramp back up the rest of the week, and should see more areas see harvest begin by this weekend. Domestic and export bids are softer, especially for protein levels below 12.0%, as early harvest reports are indicating a low protein crop ahead. ABARE raised its 16/17 Aussie wheat production estimate to 25.4 MMT after recent rains have improved conditions, up from 24.5 and a 4-year high. Outside markets are mixed, with USD down 200 points, Crude Oil down 70 points but S&P futures up 4 points. Look for wheat to see some strength following the recent trend lower, but fundamental factors point toward prices flattening out.
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