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.
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: