Wheat futures rally two percent in shrug to dollar's advance

Wheat futures jumped nearly two percent in American trade even as the dollar index hit the highest since August 22, following an array of data from the US, the world's second largest wheat exporter, and ahead of the USDA report on grain harvest in the weekend. 

As of 08:58 GMT, wheat futures due on December 15 surged 1.71% to $4.6150 from the opening of $4.5375, while the dollar index advanced 0.49% to 93.42 from the opening of 92.97. 

Earlier US data showed durable goods orders, which constitute nearly half the consumer spending, in turn representing over two thirds of American GDP, rose 1.7% in August, compared to a 6.8% tumble in July, while core orders rose just 0.2% in line with expectations, and down from 0.6% in July. 

US pending home sales fell 2.6% in August, adding to July's 0.8% drop, while analysts expected a 0.5% fall, and on a yearly basis, sales tumbled 3.1%, compared to July's 0.5% dip. 

Federal Reserve Chair Janet Yellen made a speech yesterday where she asserted that gradual increases of interest rates are the most appropriate path as inflation softens and global interest rates fall, and adding it doesn't make sense to keep rates at their current levels until inflation hits the Fed's 2% target, in turn raising bets on a December rate hike to 70% in financial markets. 

Otherwise, markets await the US Department of Agriculture's report on Friday, expected to downgrade estimates for US wheat harvest in the marketing year of 2017-2018 starting September by about 21 million bushels to a projected total of 1.718 million bushels, while concerns mount over the performance of Australian wheat amid dry weather over there lately.