Wheat futures fell over one percent in American trade, while the dollar index backed off August 21 highs, following earlier data from the US, the world's second largest wheat producer and exporter.
As of 07:23 GMT, wheat futures due in December fell 1.03% to $5.0625, while the dollar index dropped 0.44% to 94.51 against a basket of major rivals.
From the US, the Empire State Manufacturing Index receded to 19 in September from 25.6, missing estimates of 23.2.
USDA Reports Sales, Forecasts, Inspections
The US Department of Agriculture reported wheat sales for the new marketing year at 387.6 thousand tonnes in the week ending September 6, with Taiwan at the top with 112.5 thousand, followed by Mexico at 37 thousand, then Italy at 31.4 thousand.
The USDA raised its global wheat production forecasts to 4.7 million metric tonnes in its latest agricultural supply and demand monthly report, with Russia's output expected to increase 3 million tonnes, while Australian output is expected to decrease by 2 million tonnes.
As for inspections, the USDA reported inspecting 429.1 thousand tonnes for wheat product destined for exports in the week ending September 6, compared to 304.2 thousand in the previous week.
The USDA inspected 508.9 thousand tonnes in the same week of 2017 for comparison, with total inspected product now amounting to 5.68 million tonnes in the current marketing year, compared to 8.26 million in thew same period of last year.