Wheat futures fell nearly two percent in American trade off December 4 highs for the third session out of five, while the dollar index retreated from June 2017 highs for the fourth straight session, following earlier data from the US, the world's second largest wheat producer and exporter.
As of 06:05 GMT, wheat futures due in March fell 1.74% to $5.2350 off three-month highs, while the dollar index fell 0.49% to 96.63, marking December 10 lows.
USDA Data
The US Department of Agriculture reported inspections of 682.2 thousand tonnes of wheat product destined for export in the week ending December 13, up from 449.0 thousand in the previous week, and 625.1 thousand in the same period of 2017, with total inspected product for this marketing year amounting to 11.7 million tonnes, below the same period of last year at 13.8 billion.
Earlier this month, the USDA released its report on global agricultural demand and supply, at which it cut forecasts for wheat output to 733.41 million tonnes, or by 100 thousand tonnes.
Inventories are estimated to reach 266.71 million tonnes by the end of this agricultural year, slightly down from 268.10 million tonnes in previous forecasts.
Otherwise, earlier US data showed the current trade deficit rose to $125 billion as expected from $101 billion in the second quarter.
US existing home sales rose 1.9% in November to an annualized 5.32 million units from 5.22 million in October, beating expectations of a 0.4% drop to 5.20 million.
The Federal Open Market Committee is wrapping up its two-day policy meeting today, with analysts expected the fourth rate hike of the year to below 2.25%.
The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.