Wheat prices hit five-month high as weather dries up

Wheat futures rallied over three percent in American trade to September 29 highs even as the dollar index surged as well, following earlier data from the US, the world's second largest wheat exporter, and amid forecasts of less rainfall than usual for at least 15 days in US areas with red winter wheat, which are already very dry. 

As of 08:27 GMT, wheat futures due on March 15 rose 3.19% to $4.6050 from the opening of $4.4625, while the dollar index jumped 0.75% to 90.26 from the opening of 89.58, marking a two-week high. 

Earlier from the US, Federal Reserve Bank of New York President William Dudley spoke about banking culture at an event jointly hosted by Thomson Reuters and the European American Chamber of Commerce, in New York, while markets await Federal Reserve Bank of San Francisco President John Williams' speech at a community leaders luncheon, in Honolulu.

The US Department of Agriculture reported its weekly inspection data on export harvests, marking 428.6 thousand tonnes of inspected wheat in the week ending last Sunday, down from 581.6 thousand tonnes in the previous week, while also below 685.2 thousand tonnes in the same period of 2017. 

Now total inspections for the current marketing year starting last June reached 16.6 million tonnes, down from 17.5 million in the same period of of last year. 

The US Department of Agriculture recently released its monthly report on wheat inventories, expecting them to reach 959 million bushels in the marketing year ending May 31, while forecasting the harvesting of 31.3 million acres of winter wheat, with the inventory projections up 29 million bushels from previous forecasts.