Wheat futures rise as USDA cuts outlook after weak winter crop

[Road through wheat field]
Toltek/iStock via Getty Images

U.S. wheat and corn futures rose sharply for the second straight session Wednesday after the U.S. Department of Agriculture released its annual Acreage report and its quarterly Grain Stocks report.

Wheat led the CBOT on projections of a tighter global supply-and-demand picture due to a shortfall in U.S. winter wheat, as well as the effects of heat in France and potential problems with the Russian crop.

However, "traders still need a stronger bullish fundamental story for a sustained rebound, especially with weather forecasts supporting strong yield potential," Joe Davis of Futures International said in a note.

On Wednesday, CBOT wheat (W_1:COM [https://seekingalpha.com/symbol/W_1:COM]) for September delivery jumped 2% to $6.01 per bushel, corn (C_1:COM [https://seekingalpha.com/symbol/C_1:COM]) for December delivery added 1.6% to $4.43 per bushel, and soybeans (S_1:COM [https://seekingalpha.com/symbol/S_1:COM]) for November delivery edged uo 0.5% to $11.49 1/2 per bushel.

The USDA's annual Acreage report [https://www.nass.usda.gov/Newsroom/2026/06-30-2026.php] showed total wheat acreage declining 6% Y/Y to a less-than-expected 42.7M acres, and the government's Grain Stocks report revealed a lower-than-forecast 920M bushels of old crop wheat in U.S. inventory as of June 1.

"Small acres on a struggling crop is the friendliest setup in the report, in our view," Jake Hanley of Teucrium Trading said in a note, adding the data suggests that supply and demand for U.S. wheat is tighter than soybeans and corn, which seem more relaxed.

The latest USDA Crop Progress report published Monday said just 26% of the U.S. winter crop was in good or excellent condition, down from 48% at the same time a year ago.

ETFs: (WEAT [https://seekingalpha.com/symbol/WEAT]), (CORN [https://seekingalpha.com/symbol/CORN]), (SOYB [https://seekingalpha.com/symbol/SOYB]), (DBA [https://seekingalpha.com/symbol/DBA]), (MOO [https://seekingalpha.com/symbol/MOO])

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