Wheat prices tilt higher after India ups purchases

Wheat prices tilted higher in American trade, shrugging off the dollar's slight advance, after India's wheat purchases rose 6% y/y, or about 3.8 million tonnes. 

As of 07:39 GMT, wheat futures rose 0.17% to $434.00 a bushel from the opening of $433.25, with an intraday high at $436.50, and a low at $431.50, while the dollar index climbed 0.03% to 100.73 from the opening of 100.68. 

Wheat prices were buoyed after the Indian government bought more  wheat that the last year within a subsidized food program there that starts each year from April, with most amounts scheduled for purchase in the first three months of the financial year that also starts in April. 

The Indian government imposed a 10% additional tax on wheat imports, while raising the minimum prices by 100 rupees for the 2017-2018 season to 1,625 rupees, with the government purchases expected a 33 million tonnes this year. 

Similarly, the Indian government targeted 28 million tonnes to buy last year but only did below 23 million tonnes, after the yield for the agricultural year 2016-2017 rose to 92.29 million tonnes.