Wheat futures rally over one percent

Wheat futures rose over one percent as the dollar index fell to the lowest since November 9, following earlier data from the US, the world's second largest wheat exporter. 

As 08:00 GMT, wheat futures due on July 15 rose 1.46% to $4.3575 from the opening of $4.2925, while the dollar index fell 0.18% to 96.63 from the opening of 96.70, marking a seven-month low. 

Wheat prices drew support from the USDA report, which pointed to steep drops in spring harvests, while classifying the spring wheat in the agriculture year of 2016-2017 as 55% of good to excellent in the week ending last Sunday, down from the previous week's estimates of 62%, and 79% in the same period of last year.  

Currently, 10% of the winter wheat harvest has been done, up from 7% in the five-year average, and 2% last year, while the report pinned a 49% ratio for the winter harvest as good to excellent, down one percent from the previous week. 

As for the spring harvest, its good to excellent ratio fell 7% to 55%, the worst in this time of year since 2002, after the US National Weather Service reported little to no rain in the last two weeks in North Dakota, America's largest wheat producer. 

According to Waite Associates' report earlier this month, the average ratio of protein in US spring wheat this year is down 11.5% from the five-year average at 12.8%, while preliminary samples showed the current season with an average of 10.8%. 

The lion share of the spring harvest will proceed this month and the next one, while noting that spring wheat is known for its denser protein components compared to the winter wheat, which is usually used for baking cake and bread or even animal fodder if the quality of the harvest is very low regarding protein.