Wheat futures fall to seven-week low as dollar widens gains

Wheat futures fell nearly one percent in American trade away from March 19 highs for the third straight session, as the dollar index rebounded from February 16 lows, following earlier data from the US, the world's second largest wheat exporter, while markets price in US weather improvement and rainfall. 

As of 07:20 GMT, wheat futures due on May 15 fell 0.78% to $4.455 from the opening of $4.490, while the dollar index rose 0.78% to 90.07 from the opening of 89.37, marking March 21 highs. 

Earlier US data showed the final reading for GDP growth at 2.9% in the fourth quarter, up from 2.5% in the previous reading, and beating expectations of 2.7%, while GDP prices rose 2.3% with no change. 

US goods trade deficit rose to $75.4 billion from $75.3 billion in January, above expectations of $74.4 billion.

Wholesale inventories rose 1.1% in February, up from 0.8% in January, and above expectations of 0.6%. 

Pending home sales rose 3.1% in February, compared to a 5% drop in January, revised from a 4.7% decline, while analysts expected a 2.1% rise, and on a yearly basis, sales fell 4.4%, deepening the 1.9% decline of January. 

Federal Reserve Bank of Atlanta President Raphael Bostic spoke at the Atlanta Society of Finance and Investment Professionals luncheon, where he asserted the need to normalize interest rates by gradual hikes, noting that inflation is improving, while dismissing the stock market's transient volatility as not much consequential.

The US Department of Agriculture reported 278.8 thousand tonnes of wheat that have been inspected in the week ending March 22, down from 476.5 thousand tonnes in the previous reading, and compared to 546.2 thousand tonnes in the same period of last year, with total inspected product in the marketing year starting June now mounting to 19.4 million tonnes, down from 21.3 tonnes in the same period of the previous year.