Wheat hits five-week high, dollar tumbles from year peak

Wheat futures rose over two percent to June 13 highs as the dollar index fell for the first time in four days, moving away from July 14, 2017 highs, after USDA sales data and amid dry weather and heat waves in the US. 

As of 07:34 GMT, wheat futures due on September 15 rose 2.33% to $5.160 a bushel, marking five-week highs, while the dollar index skidded 0.76% to 94.44 from the opening of 95.16. 

The US Department of Agriculture reported wheat sales at 300 thousand tonnes in the week ending July 12, up from 136.4 thousand in the previous week, and up 25% from four-week averages, with Philippines at the top of the buyers list at 136.2 thousand, then Taiwan at 64 thousand, and Honduras, Brazil at 42.4 thousand and 28 thousand respectively. 

Trump Blasts EU, China 

President Donald Trump tweeted earlier: "China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge. As usual, not a level playing field.."

He added: "Farmers have been on a downward trend for 15 years. The price of soybeans has fallen 50% since 5 years before the Election. A big reason is bad (terrible) Trade Deals with other countries. They put on massive Tariffs and Barriers. Canada charges 275% on Dairy. Farmers will WIN!"

President Donald Trump criticized the Federal Reserve in an interview with CNBC, saying he's "not thrilled" with rate hike decisions that lead to a stronger dollar, while China's yuan falls like a rock. 

He commended Fed Chair Jerome Powell as a "good man", adding he won't intervene into the Fed's actions, with the remarks overall weighing on the dollar on currency war concerns. 

In his two-day testimony before the two chambers of Congress, Fed Chair Jerome Powell pointed to strong economic growth this year with continued improvement in the labor market and inflation rates, while cautioning from short-term consequences to trade protectionism.