Wheat prices drop 1% on global oversupply

Wheat futures fell over one percent in American trade away from March 19 highs as the dollar index plumbed February 19 lows, amid a lack of data from the US, the world's second largest wheat exporter, while markets price in global oversupply and better US weather and rainfall. 

As of 07:58 GMT, wheat futures due on May 15 fell 1.30% to $4.5425 from the opening of $4.6025, while the dollar index tumbled 0.43% to 89.05 from the opening of 89.44, marking five-week lows. 

Federal Reserve Bank of New York President William Dudley participated earlier today in a panel discussion about regulatory reform at the United States Chamber of Commerce, in Washington DC, while Federal Reserve Bank of Cleveland President Loretta Mester is due to speak about the economic outlook and monetary policy at Princeton University, in New Jersey.

The US Department of Agriculture recently reported wheat sales in the week ending March 1 at 391.5 thousand tonnes, nearly double the 191.1 thousand in the previous week, and up 24% from the four-week average, with unknown buyers at the top of the list at 113.5 thousand tonnes. 

Then South Korea at 71.5 thousand tonnes, Japan at 66.1 thousand, Philippines and Colombia at 52K and 34K respectively, while Mexico canceled a 10.2K order, and finally, the USDA raised its wheat inventory expectations to 1.034 million bushels.