Wheat widens losses even as dollar slides

Wheat futures fell nearly four percent in American trade away from July 14 highs for the eighth session out of 12, even as the dollar index lost ground, amid a lack of data from the US, the world's second largest wheat exporter, while markets price in rainfall forecasts across parts of the US that were recently hurt by drought, and global oversupply.

As of 07:59 GMT, wheat futures due on May 15 fell 3.63% to $4.5075 from the opening of $4.6775, while the dollar index dipped 0.38% to 89.89 from the opening of 90.23. 

Federal Reserve Bank of Atlanta President Raphael Bostic spoke about the future of community development at the National Interagency Community Reinvestment Conference, in Miami, earlier today, while markets await the Federal Reserve Open Market Committee's policy meeting this week, at which policymakers are expected to hike interest rates by 25 basis points. 

The US Department of Agriculture recently reported wheat sales in the week ending March 1 at 391.5 thousand tonnes, nearly double the 191.1 thousand in the previous week, and up 24% from the four-week average, with unknown buyers at the top of the list at 113.5 thousand tonnes. 

Then South Korea at 71.5 thousand tonnes, Japan at 66.1 thousand, Philippines and Colombia at 52K and 34K respectively, while Mexico canceled a 10.2K order, and finally, the USDA raised its wheat inventory expectations to 1.034 million bushels.  

Last month, Egypt, the world's largest wheat importer, announced a March deadline to set up local prices a month before harvest, with the Egyptian agriculture ministry stating that wheat used in the bread subsidy program reached 9 million tonnes a year. 

The Egyptian ministry didn't specify whether it will link local prices with global ones, or will get back to the old system, where it subsidized farmers with a price higher than global ones, noting that Egypt bought about 3.6 million tonnes of local wheat last year.