Wheat futures advance in shrug to dollar's rise

Wheat futures rose nearly one percent in American trade even as the dollar index gained ground, following a basket of data from the US, the world's second largest wheat exporter, and as the Federal Open Market Committee's policy meeting draws to an end in Washington. 

As of 03:44 GMT, wheat futures due on December 15 rose 0.60% to $4.2100 from the opening of $4.1850, while the dollar index added 0.10% to 94.65 from the opening of 94.55. 

Earlier US data showed the economy created 235 new private sector jobs, up from 110 thousand jobs in September, beating forecasts of 202K, as markets look forward to the official payrolls report on Friday. 

Now markets look forward to the decisions resulting from the Fed's meeting on Tuesday and Wednesday, with policymakers expected to hold interest rates unchanged at between 1.00% and 1.25%. 

The US Department of Agriculture's report on global demand and supply for October raised forecasts for wheat inventories in the year ending August 2018 to 960 million bushels from 933 million in September forecasts, while analysts expected 944 million bushels.