US corn growers intend to plant 92.2 million acres of corn for all purposes in 2011, up 5% from last year and 7% higher than in 2009, according to the March 31 Prospective Plantings survey from the US Department of Agriculture. The corn estimate is slightly better than previous marketplace expectations. While it might provide some bearish tone to corn values, the year-over-year increase in acres is an unmistakably bullish note for US nitrogen, phosphate and potash demand. Corn values have been dropping basis forward contracts on the CME (formerly Chicago Board of Trade) over the last few weeks ahead of the report, likely factoring in much of the predicted gain in corn acres. Gains in corn and wheat acres appear to have come at the expense of soybeans, a positive sign for nitrogen suppliers that have been under pressure for months.
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