Wheat rallies 3% to three-week high after USDA data

Wheat futures rose nearly three percent in American trade to May 4 highs as the dollar index fell off December 13 highs for the second session, following earlier data from the US, the world's second largest wheat exporter, as traders price in dry weather that could hinder global cultivation.

As of 07:58 GMT, wheat futures due on July 15 rose 2.81% to $5.2150 from the opening of $5.0725, marking two-week highs, while the dollar index inched down 0.08% to 93.60 from the opening of 93.68. 

From the US, the Richmond Manufacturing Index rose to 16 in May from 3 in April, beating expectations of 9. 

Now markets await the Federal Open Market Committee's minutes for the May meeting, at which policymakers voted to stay overnight interest rates unchanged at below 1.75%. 

Later this week, Federal Reserve Chair Jerome Powell will participate in a panel discussion titled "The future of central banking?" at the Sveriges Riksbank Anniversary Conference, in Stockholm.

The US Department of Agriculture reported 36% of US winter wheat product as in good to excellent state until the week ending May 20, same percentage as the previous previous week, and compared to 52% in the same period of 2017. 

The USDA reported 341.3 thousand tonnes of inspected wheat product in the week ending last Sunday, compared to 467 thousand in the previous week, and 687 thousand in the same period of 2017.