U.S. wheat futures rallied after the Department of Agriculture lowered its wheat production forecast, projecting the smallest U.S. wheat crop since 1970. In its monthly WASDE report, the USDA estimated 2026 U.S. wheat output at 1.536 billion bushels, down 7 million bushels from the June forecast. The report also projected corn production at 16 billion bushels and soybean production at 4.48 billion bushels, with ending stocks for 2026 pegged at 1.79 billion bushels for corn, 310 million bushels for soybeans, and 722 million bushels for wheat. Analysts noted additional support for wheat futures from rumors that Russia would close the Azov-Don canal and the Kerch Strait in response to Ukrainian drone strikes, potentially trapping around 20 million tons of Russian wheat exports. CBOT September wheat settled up 3.2% at $6.39 1/4 per bushel, December corn rose 1.8% to $4.60 1/4 per bushel, and November soybeans added 0.7% to $11.89 1/4 per bushel.