Wheat drops 1% ahead of USDA report

Wheat futures fell nearly one percent in American trade away from July 12 highs, as the dollar index traded mostly flat, following earlier data from the US, the world's second largest wheat exporter, while investors await the USDA's monthly supply and demand report on Thursday. 

As of 07:24 GMT, wheat futures due on July 15 dipped 0.78% to $5.1050 from the opening of $5.145, marking early May lows, while the dollar index inched down 0.07% to 93.06 from the opening of 93.12. 

Earlier US data showed producer prices rose 0.1% in April, down from 0.3% in March, and missing forecasts of 0.2%, while core prices rose 0.2% as expected, down from 0.3% in March.

The final reading for wholesale inventories rose 0.3% in March, down from 1% in February and 0.5% in the preliminary reading, as analysts expected a 0.6% rise. 

The US Department of Agriculture reported that winter wheat product was 34% very good or excellent in the week ending May 6, up 1% from the previous week, and down from 41% in the same period of last year.