Wheat falls for first session in three after USDA data

Wheat futures fell over one percent in American trade away from September 11 highs, while the dollar index traded mostly flat for the day, following earlier data from the US, the world's second largest wheat exporter and importer. 

As of 07:58 GMT, wheat futures due in December fell 1.19% to $5.2075 away from two-week highs, while the dollar index shed 0.05% to 94.14. 

USDA Reports Sales, Forecasts, Inspections 

The US Department of Agriculture reported inspections of 409.6 thousand tonnes of wheat product destined for export in the week ending September 20, almost the same as 410.7 thousand in the previous week, and compared to 502.7 thousand in the same week of 2017. 

Total inspected output has now reached 6.53 million tonnes in the marketing year starting June, down from 9.23 million in the same period of 2017. 

As for sales, the USDA reported a 21% surge to 468.4 thousand tonnes last week, with Philippines at the top of the buyers list at 80 thousand, followed by Indonesia at 70 thousand, Vietnam at 61.0 thousand, and Thailand at 55.1 thousand.  

The USDA also 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. 

Markets now look forward to the results of the Federal Open Market Committee's September 25-26 policy meeting in Washington, with analysts betting on another 0.25% rate hike to just below 2.25%.

The FOMC will also release three-year forecasts for inflation, growth, unemployment, and interest rates, and potentially hints about the upcoming rate hike, expected in December.