Wheat closes lower after Australia raises wheat output forecast

Wheat prices fell on Tuesday, as the US dollar rose against its peers, amid forecasts of higher Australian wheat production.

The Australian government, which is one of the world's top wheat producers, has raised its forecast for wheat production by 8.4% during the 2020-2021 harvest season.

Wheat prices were also weighed down by technical sell-off, which pushed it below the 200 day moving average.

While all agricultural commodities came under pressure due to the mounting trade tensions between the US and China again.

This came after US President Donald Trump stated that his administration is considering separating the US and Chinese economies "decoupling," to not depend on Beijing for most industrial activities.

The dollar index rose against a basket of currencies by 0.7% to 93.4 points as of 22:03 GMT, after it hit a high of 93.4 and a low of 93.

Wheat December futures fell 1% to close at $5.44 per bushel, after hitting a day high of $5.51 and a low of $5.42.