Wheat prices rose above $6.10 per bushel, the highest level since June 2024, after a key USDA report confirmed a sharp decline in US acreage and inventories amid the five-week conflict in the Middle East. The USDA Prospective Plantings report showed that US wheat acreage for 2026 fell to 43.80 million acres, as persistent dryness across the Plains and sharply higher input costs linked to the Persian Gulf war led farmers to scale back production. In addition, grain stocks data indicated that US wheat inventories dropped to 1.30 billion bushels in the first quarter of 2026, a steep decline from 1.68 billion bushels previously. Although reports of possible peace talks between President Trump and Iran briefly tempered broader market volatility, the supply shock stemming from the closure of the Strait of Hormuz continues to support agricultural commodity prices. With only 40% of the Kansas winter wheat crop rated in good or excellent condition, the market remains highly sensitive to further supply risks.