Wheat prices tumble over two percent in American trade

Wheat futures fell over two percent in American trade as the dollar index edged higher according to their inverse relation, amid a lack of data from the U.S., the world's second largest wheat exporter, and ahead of the Federal Open Market Committee's 14-15 periodic meeting.
 
As of 07:48 GMT,wheat futures due on May 16 fell 2.27% to $430.50 a bushel from the opening of $440.50, with an intraday low at $430.00, and a high at $442.00, while the dollar index rose 0.05% to 101.35 from the opening of 101.30.
 
Last Friday, the payrolls report showed the U.S. economy created 235 thousand new jobs in February, beating expectations, while the unemployment sector fell to 4.7% as expected. Average hourly earnings rose 0.2%, missing expectations.
 
Similarly, the U.S. Agriculture Ministry's report last week showed wheat supplies have risen by 16.2% to 92.5 million metric tonnes, compared to 79.7 million tonnes in 2016, while global supplies rose 4.1% to 991.4 million metric tonnes from 952.8 million in 2016, with supplies rising specially in Argentine and Australia, weighing on prices.
 
Markets now await the Fed's policy meeting this week, with policymakers expected to reveal their three-year forecasts for inflation, growth, unemployment, and interest rates, with the latest expected to rise by 25 basis points this week to between 0.75% and one percent after Fed Chair Yellen said last week a rate hike would be appropriate if inflation and employment kept in line with the Committee's forecasts.