USDA Report - Wheat

The USDA pegged the US all winter wheat acreage at 37.097 million acres, comfortably lower than the lowest pre-report estimate and almost 4 million below the average trade guess of 40.916 million acres. HRW wheat area accounts for 27.8 million of that, with SRW area 5.9 million acres.

That's where the bullish news ends. With the slow pace of US exports 2009/10 carryout was raised from last month's estimate of 900 million bushels to 976 million, 71 million above analyst's estimates.

World carryover was also increased from 190.9 MMT last month to 195.6 MMT this time round. Production numbers were left unchanged amongst most of the major players with the exception of Russia, where output was upped from 59.5 MMT to 61.7 MMT.