Wheat futures shed 3% in American trade

Wheat futures tumbled nearly three percent to the lowest since June 29 below $5 for the second straight session, as the dollar index pulled away from the lowest since June 22, 2016, following earlier data from the US, the world's second largest wheat exporter. 

As of 07:40 GMT, wheat futures due on September 15 fell 2.86% to $4.7475 from the opening of $4.9475, while the dollar index rose 0.11% to 94.09 from the opening of 94.03. 

Earlier US data showed housing prices slowed down unexpectedly in May, while consumer confidence rose also unexpectedly in July, as the Richmond manufacturing index climbed beyond forecasts also this month. 

Similarly, markets look forward to the Federal Reserve's decisions, expected to maintain interest rates at their range of 1% and 1.25%, while looking for clues regarding the start data for trimming down the Fed's massive $4.5 trillion balance sheet, and the chances of a third rate hike this year. 

Wheat's plunge comes amid rainy US weather and relative improvement in conditions, which boost the grain harvest, especially wheat output, and in turn bash prices lower.