News
Threat of weekend blizzard helps corn market recover
This weekend’s forecasted blizzard has helped the corn
market recover from yesterday’s losses.
Analyst Al Kluis says December futures lost 14 cents Thursday after the bearish USDA report.
“And today, guess what? We’re up 14 cents. Everybody is looking at the weather maps, seeing how much snow is going to hit where. It looks to me like this is going to impact about 15 or 20 percent of the corn crop.”
He points out several states expected to be impacted by the storm including the Dakotas and Minnesota have fewer than 50 percent of corn acres fully mature.
“So if you take that area and even take a 10 percent loss in yield, which I think is conservative based on the lack of maturity, that could have a 2 bushel per-acre impact on the national yield or corn.”
Kluis tells Brownfield weather premium is building into both the corn and soybean markets. He says a slow start to planting in South America is also friendly right now.
