Tighter Stocks and Lower Acres Could be Friendly for Corn — USDA Report Preview With Al Kluis

Tight stocks and a reduction in acres could be supportive for corn prices come Tuesday, as the U.S.D.A. will release its Prospective Plantings and Quarterly Grain Stocks reports.

That’s according to Al Kluis of Minnesota-based Kluis Commodities.

“We had a lot of test weight problems all the way from Iowa through Minnesota and so when people are emptying their bins, there aren’t as many bushels as they thought,” he notes in the interview below.

Al Kluis
Al Kluis

Speaking at a soybean grower meeting hosted by Northstar Genetics in Morris, Manitoba on Friday, Kluis told producers to expect volatility in the markets this coming week, as the acreage report has resulted in limit moves both up and down in recent years.

At 89 million acres, Kluis is still on the higher end of analysts’ estimates for corn, which generally range from 87 to 90 million acres, down from 90.6 million acres in 2014. He points out an early start to the growing season could temper the reduction in corn area.

Kluis also shares some thoughts on the soybean and wheat markets, including why he thinks oilseeds will take acres from wheat:

Related: Fireworks Likely as Market Awaits U.S. Acreage and Stocks Estimates

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One thought on “Tighter Stocks and Lower Acres Could be Friendly for Corn — USDA Report Preview With Al Kluis

  1. Do I have this right, If a bushel of corn is by weight and not by volume then there would be less bushels in a specific volume when the mineral content is less, for less the food density is results in less the mineral content which can be tested by a Refractor which will show the Brix level. “,there aren’t as many bushels as they thought,” really caught my attention. This will happen more with less microbes in the soil.
    Hope I am in the right field and not the left field.

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