# Justifying the latest wheat rally - Morning Ag Clips

> Wheat prices have rallied recently despite lower acreage and poor crop conditions in hard red wheat states. Analyst Mike Zuzolo expects yields 3-5 bushels below USDA's May estimate, but notes Gulf soft red wheat prices are now above world offers, which weakens export demand.

- Date: 2018-05-27 · published 2018-05-27T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/65062-justifying-the-latest-wheat-rally-morning-ag-clips
- Commodities: [Wheat (HRW)](https://feedsoft.ai/c/KWHEAT.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md)

## Why it matters

Poor HRW conditions support prices, but uncompetitive US export pricing could limit demand and cap gains unless Eastern Europe or Australia production falls.

## Read by commodity

- WHEAT: bullish ▲
- KWHEAT: bullish ▲

## Sources

- morningagclips.com: https://www.morningagclips.com/justifying-the-latest-wheat-rally/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.