Wheat futures drop 2% to two-week low

Wheat futures fell nearly two percent to the lowest since November 2, even as the dollar index plumbed the lowest since October 20, following a basket of data from the US, the world's second largest wheat exporter. 

As of 08:26 GMT, wheat futures due on March 15 slid 1.97% to $4.3650 from the opening of $4.4525, while the dollar index dipped 0.06% to 93.77 from the opening of 93.83. 

Earlier US data showed consumer prices rose just 0.1% in October in line with expectations, down from September's 0.6% increase, while core prices, excluding food and fuel, rose 0.2% m/m, matching forecasts and above September's 0.1% reading. 

US retail sales rose 0.2% m/m in October, beating expectations of no-change and slowing down sharply from September's 1.9% rise, revised higher from 1.6%, while core sales, excluding automobiles, rose 0.1%, below expectations of 0.2%, and compared to September's 1.2% rise, revised higher as well from 1.0%. 

The Empire State Manufacturing Index slid in November to 19.4, missing expectations of 25.5 and sharply down from October's 30.2. 

Otherwise, the US Department of Agriculture reported last week that wheat inventories could reach 935 million bushels, down from 960 million in previous forecasts, while analysts put them at 957 million, while the USDA raised exports projections by 25 million bushels due to recent red winter wheat sales to Iraq.