By Tom Polansek
   Of DOW JONES NEWSWIRES


  CHICAGO (Dow Jones)--Harvest pressure is expected to weigh down U.S. Wheat
futures at the start of Thursday's day session as traders look ahead to the
holiday weekend.

  Chicago Board of Trade September wheat is called to open 2 to 4 cents per
bushel lower. In overnight electronic trading, CBOT September wheat lost 3 1/4
cents to $5.32 1/4, and CBOT December wheat dropped 3 cents to $5.58 1/2.

  Harvest continues hanging over the markets as cutting starts to wind down in
parts of southern Kansas, traders said. Harvest in northern and eastern Kansas
is still "in full swing as we approach the 4th of July weekend," according to
growers' group Kansas Wheat.

  "I think that's exactly what's keeping pressure on us, that harvest-type
pressure," said Larry Glenn, broker and analyst for Frontier Ag. "As it moved
north in Kansas, the yields got better."

  Rains in Kansas, typically the top wheat-producing state, could slow hedging
activity that would "normally be fairly heavy late in the session ahead of a
holiday weekend," said Bryce Knorr, analyst for Farm Futures. The Chicago Board
of Trade, Kansas City Board of Trade and Minneapolis Grain Exchange are closed
Friday in honor of U.S. Independence Day.

  Weekly U.S. wheat export sales of 241,900 tons for the week ended June 25
were toward the low end of analysts' estimates, which ranged from 200,000 tons
to 400,000 tons. Export sales were down 34% from the previous week, according
to the U.S. Department of Agriculture.

  In other export news, Japan said it bought 87,000 tons of U.S. wheat and
21,000 tons of Australian wheat in a routine tender concluded Thursday. The
shipment is expected to arrive Aug. 11 to Sept. 10.

  Export demand has been lackluster lately and needs to pick up to support
prices, an analyst said. The supply storyline for wheat is seen as bearish, as
U.S. and world supplies are considered adequate, he said.

  The likelihood of an El Nino climate episode in the coming months increases
the chance of a poor Australian wheat harvest late in 2009, but it isn't a
certainty yet, according to analysts and industry participants. Dryness,
meanwhile, remains a concern in Argentina.

  Recent rainfall and warmer temperatures in the Canadian Prairies has improved
conditions for developing crops, including wheat, according to Meteorlogix.
Spring wheat in the U.S. northern Plains also should see "generally favorable
weather conditions," the firm said.

  The next downside price objective for the bears is pushing and closing CBOT
December wheat below solid technical support at $5.42, a technical analyst
said. Bulls' next upside price objective is to push and close the contract
above solid technical resistance at $6.00, he said.

  First resistance is seen at Wednesday's high of $5.75 and then at $5.80.
First support lies at Wednesday's low of $5.55 1/2 and then at this week's low
of $5.50.