Wheat Closes with Report Day Gains as Acres Seen Lower than Expected

Wheat futures rallied on the USDA report, with Chicago SRW up roughly 4 to 9.25 cents and Kansas City HRW up about 3 to 9.25 cents (KC contracts off midday highs). Minneapolis spring wheat also moved higher. The move reflects a modestly bullish market reaction to the USDA data and could tighten near-term supply/demand pricing in the soft red and hard red wheat complexes.

Analysis

Wheat futures rallied on the USDA report, with Chicago SRW up roughly 4 to 9.25 cents and Kansas City HRW up about 3 to 9.25 cents (KC contracts off midday highs). Minneapolis spring wheat also moved higher. The move reflects a modestly bullish market reaction to the USDA data and could tighten near-term supply/demand pricing in the soft red and hard red wheat complexes.