Wheat resumes decline from four-month high

Wheat futures fell one percent in American trade away from September 29 highs as the dollar index gained ground, following earlier data from the US, the world's second largest wheat exporter, while Federal Reserve Bank of San Francisco President John Williams spoke earlier today. 

As of 08:51 GMT, wheat futures due on March 15 fell 0.94$ to $4.4675 from the opening of $4.5100, while the dollar index rose 0.55% to 89.16 from the opening of 88.67. 

Earlier US data showed the unemployment rate settled at 4.1% in January in line with expectations, the lowest since December 2000, while  average hourly earnings slowed down to 0.3% in January from 0.4% in December, revised from 0.3%, and beating expectations of 0.2%. 

The US economy added 200 thousand new jobs in January, up from 160K in December, revised from 148K, and beating expectations of 181K, while factory orders rose 1.7%, same as before and beating expectations of 1.5%. 

The University of Michigan released its Consumer Sentiment survey for January, showing a dip to 95.7 from 95.9 in December, beating expectations of 95.0. 

The economic conditions gauge in the same survey fell to 110.5 from 113.8, while economic outlook rose to 86.3 from 84.3. 

The US Department of Agriculture recently released its monthly report on wheat inventories, expecting them to reach 959 million bushels in the marketing year ending May 31, while forecasting the harvesting of 31.3 million acres of winter wheat, with the inventory projection up 29 million bushels from previous forecasts.