Wheat rallies 3% on steep decline in European output

Wheat futures rose nearly three percent in American trade, resuming the gains after a hiatus on Friday, and setting sight on July, 2015 highs hit last Thursday. 

Wheat prices have been boosted to multi-year highs recently amid drought in Europe and heat waves in the US, with the latest data indicating that EU, Russian output could take hit by as much as 35 million tonnes this year.

As of 07:58 GMT, wheat December futures rose 3.02% to $5.9725, while the dollar index climbed 0.22% against a basket of major rivals to 95.37, marking July 19 highs. 

USDA Reports Sales, Harvest Forecasts 

The US Department of Agriculture is forecasting US winter wheat harvest to reach 657 million bushels in the marketing year starting last June, down from 750 million last year, and for spring wheat to amount to 584 million, up from 385 million last year. 

The USDA also reported sales of new wheat product due for delivery in the new marketing year at 382.5 thousand tonnes in the week ending July 27, down 1% from the previous week, while 21% above four-week averages. 

Taiwan came at the top of the buyers list at 104.9 thousand tonnes, followed by Philippines at 104.0 thousand, while Indonesia and Sri Lanka bought 70.0K and 60.0K respectively, with Mexico accounting for 30.7 thousand tonnes.