Corn acreage reduction truly unprecedented
The adjustment in corn acreage from the March prospective planting forecast of 97 million to this week’s USDA projection of 92 million acres is the largest in the history of the reports.
Al Kluis with Kluis Commodity Advisers says these estimates date back nearly 40 years, demonstrating how significant the 5 million-acre reduction is.
“And what’s encouraging, especially if you plug in the rally of today, we’re trading up at three-month highs.”
During a webinar Wednesday hosted by the Minnesota Corn Growers Association, Kluis says producers should be ready to sell into this rally.
“It wasn’t that long ago when corn was projected to get down to $2.90. And again, whether you look at a daily chart (or) weekly chart, you get back up near $3.70 to $3.80 you’re going to run into resistance.”
New crop December corn futures closed a dime higher at $3.60 ½ Wednesday.