Last week, May 2011 corn opened the week at 728.50 and closed the week at 664.25. May 2011 cotton opened the week at 213.75 and closed the week at 204.94. Nice drops for both markets. For corn, acreage projections are for 92.5 million acres for 2011. Last year acreage for corn was 88.8 million acres. For cotton, acreage projections are for 12.5 million acres. Last year the United States planted 10 million acres of cotton. In 2006 the United States planted 15 million acres and by 2009 dropped 6 million to 9 million acres planted. On March 31 the USDA will release the 2011 Perspective Plantings report. That will confirm these projections. Of course, if we see higher acreage numbers than above, it will affect these markets and keep the bears happy.
Total increased acreage for the United States is projected at 9.8 million acres for all markets
Technically, for corn the four- and nine-day EMA have crossed below the 18-day EMA. ADX numbers are rising and DI- is well over DI+. MACD is bearish and Stochastics now are oversold. For cotton, we have not seen the four- or nine-day EMA cross over the 18-day EMA. DI+ is still over DI- but is dropping, as is ADX. MACD has crossed the signal line down. Stochastics are mid-range and bearish.
Proceed to Page 2 for the latest COT data...