Wheat drops 3% as dollar hits 2018 peak

Wheat futures fell three percent in American trade away from July 12 highs for the third straight session as the dollar index scaled December 28 highs, amid a lack of data from the US, the world's second largest wheat exporter, while markets price in improved US weather and rainfall forecasts, which would prop up the product. 

As of 07:58 GMT, wheat futures due on July 15 fell 2.80% to $5.115 from the opening of $5.2625, while the dollar index rose 0.20% to 92.75 from the opening of 92.57. 

Earlier today, Federal Reserve Bank of Atlanta President Raphael Bostic delivered opening remarks at the Federal Reserve Bank of Atlanta's 23rd Annual Financial Markets Conference, in Florida, while Federal Reserve Bank of Richmond President Thomas Barkin spoke at George Mason University, in Virginia. 

Tomorrow, Federal Reserve Chair Jerome Powell will deliver a speech titled "Monetary Policy Influences on Global Financial Conditions and International Capital Flows" at the High Level Conference on the International Monetary System, hosted jointly by the Swiss National Bank and International Monetary Fund, in Zurich.

The US Department of Agriculture reported that wheat sales in the week ending April 26 dipped 0.21% to 234.8 thousand tonnes to 297.2 thousand, while analysts expected between 100 and 300 thousand tonnes for new crops. 

Mexico came at the top of the buyers list with 70 thousand tonnes, then South Korea at 50 thousand, Chile at 34K, Guatemala at 23K, while the Philippines cancelled a 47K order.