Referee George Cain called a 2pm pitch inspection before deciding that conditions were too treacherous for the game to be played.
Many Royals fans had made the 190 mile trek up North only to hear that the match would not take place.
Reading midfielder Kevin Watson believes that Mr Cain's decision to call the game off was the correct one, suggesting the game would have ended in a debacle had the match kicked off.
He told readingfc.co.uk: "It would have been a farce of a game, I imagine. They weren't the conditions to play a game of football in."
The former Rotherham man believes it would have been impossible for the Royals to play their usual passing game on such a poor surface.
He added: "If we had played it would have taken away from the way we want to play - it would have been totally unsuitable."
With no league fixture Reading slipped one place in the league to seventh, Wolves making it into the top six.
However, the Royals now have a game in hand over the rest of the league. Should they win they could rise as high as fifth.
No date for the rearranged game with the Blades has yet to be set.