Wheat falls off four-week high as dollar trades flat

Wheat futures fell nearly one percent in American trade away from March 13 highs for the second session, as the dollar index traded mostly flat, following earlier data from the US, the world's second largest wheat exporter. 

As of 07:51 GMT, wheat futures due on May 15 fell 0.84% to $5.0425 from the opening of $5.0850, while the dollar index dipped 0.04% to 89.55 from the opening of 89.59, marking March 28 lows. 

Earlier US data showed consumer prices fell 0.1% m/m in March, compared to a 0.2% rise in February while missing expectations of no-change, as core prices rose 0.2% in line with expectations in March. 

On a yearly basis, US consumer prices rose 2.4% as expected, up from 2.2% in February, while core prices rose 2.1% with no change, matching expectations, as markets now look forwards to Fed's minutes later today. 

The US Department of Agriculture released its monthly report on supply and demand projections, raising expectations for US wheat inventories in the marketing year of 2017-2018 by 30 million bushels to 1.064 billion bushels, while maintaining wheat prices projections between $4.6 and $4.7 per bushel. 

The USDA raised forecasts for global wheat supplies by 3 million tonnes, while expecting another record high for output at 759.8 million tonnes, with growth in supplies expected to surpass consumption growth, while global wheat inventories are expected to rise by 2.3 million tonnes to 271.2 million tonnes.