Wheat prices boosted by cold weather amid winter damage concerns

Wheat futures rose nearly two percent in American trade as the dollar index fell according to their inverse relation, which follows earlier data from the U.S., the world's second largest wheat producer. 

As of 07:50 GMT, wheat futures due on July 15 rose 1.85% to $427.00 a bushel from the opening of $419.25, with a session-high at $429.25, and a low at $416.00, while the dollar index shed 0.28% to 98.81 from the opening of 99.09.

The U.S. experienced an off-put spring this year, with steep heat in March, then perfect spring at the start of April, which allowed for early agriculture and crop raising, but by the middle of the month, weather turned cold, and is expected to be colder and damper than usual in this period of the year in a week or two, exposing the winter wheat crops to frost damage.  

And as the weather turned from perfect spring to cold, and as experts point to even colder conditions in the next week, especially in northern Texas, prices were buoyed. 

The U.S. official crops report showed winter wheat crops were at 32% compared to the five-year average of 23%, while winter wheat at 54% are categorized good to excellent, but below the last year's 59% mark.