The U.S Department of Agriculture released its latest world agricultural supply and demand estimates report, lowering U.S wheat acreage.

Chris Palmer, a trader with commodity risk management at G-3 Canada, says the U-S-D-A's new number on winter wheat acreage is the smallest cumulative acreage since 1913.

Palmer says wheat contracts made about a 15 to 20 cent rally on Tuesday after the report came out, but it didn't last.

"In the last couple days, it has turned right around in fact we're even lower than where we were going into the report so we gave it back Wednesday and Thursday and it is basically a wash. It was a two day rally and that was it. Ultimately the traders come back to the global production numbers and global stock numbers and it is still a burden on supply on the global level."

Palmer says the U.S economy has stayed strong, and this isn't all bad for Canadian farmers.

"It provides a buffer for the low futures prices we're seeing cause our Canadian dollar is weaker than an American based trade, of course all AG is traded in U.S dollars, it has provided our producers a cushion on the downside move."

Palmer says it's hard to call a bottom on the weakening loonie, with a rally not looking likely anytime soon.