Wheat rebounds from six-week low as dollar slides

Wheat futures rose nearly one percent in American trade away from February 6 lows, as the dollar index plumbed February 20 lows, following earlier data from the US, the world's second largest wheat exporter. 

As of 07:55 GMT, wheat futures due on May 15 rose 0.99% to $4.6025 from the opening of $4.5575, marking six-week lows, while the dollar index fell 0.48% to 89.43 from the opening of 89.86. 

Silver futures rose over one percent in American trade to March 13 highs as the dollar index gave up ground, following earlier data from the US, the world's largest economy, while Federal Reserve Bank of Atlanta President Raphael Bostic spoke about the economic outlook at the Knoxville Economics Forum.

As of 06:04 GMT, silver futures due on May 15 rose 1.18% to $16.580 an ounce from the opening of $16.387, while the dollar index declined 0.50% to 89.41 from the opening of 89.86. 

Federal Reserve Bank of Atlanta President Raphael Bostic expressed in earlier remarks his confidence in the economy's ability to reach Fed's target, adding that the decision to hike interest rates this week was a logical one, due to the chances that inflation could pass 2% soon. 

US durable goods orders rose 3.1% in February, beating expectations of 1.6%, and compared to January's 3.6% drop. 

Core orders, excluding transportation, rose 1.2%, compared to a 0.2% in the previous reading, while analysts expected a 0.5% rise. 

US new home sales fell 0.6% in February to an annualized 618 thousand units, compared to a 4.7% drop to 622K in January, revised from 593K, while analysts expected a rise to 4.6% to 621 thousand units. 

US President Donald Trump signed a budget bill that increased spending on government and the military, after signing a memorandum paving the way for tariffs on up to $60 billion worth of Chinese imports, rekindling fears of a global trade war. 

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.