Wheat futures tumble three percent

Wheat futures slumped nearly three percent in American trade even as the dollar gave up ground for the first time in four sessions, amid a lack of data from the US, the world's second largest wheat exporter, and after the US Department of Agriculture's monthly report on demand and supply yesterday.

As of 07:17 GMT, wheat futures due on July 15 fell 2.69% to $4.3375 from the opening of $4.4575, while the dollar index inched down 0.08% to 97.20 from the opening of 97.28. 

The USDA upgrades its forecasts for US winter wheat harvest in 2017 to 1.25 billion bushels from 1.246 billion, while raising its forecasts for acre productivity to 48.9 bushels per acre from 48.8 bushels in previous forecasts.  

Similarly, grain fund managers cut their positions on winter wheat contracts to 112.4 thousand last week from 121.6 thousand in the previous weak, while winter wheat still carries net long-term contracts that reflect bullish bets from investors for the coming period.