What is the difference between old crop and new crop in agricultural commodities? When analysts and traders talk about agricultural commodities like soybeans and corn, they are usually referring to the old crop versus the new crop and this can confuse some beginners as to what the difference actually is.
I’ll keep it simple because the only difference between the old crop and new crop is that in soybean the old crop is any month other than november for example march or may and all the months which were grown last year while new crop november is soybean and it will be harvested and grown in october of 2019 this heat.
This is why there is sometimes a price difference between the old crop and the new crop. Because the soybean crop this year could be as high as 4.1 billion bushels, the November contract could reduce prices as the old crop and the new crop too. can. Various carryover levels or supply levels.
Old Crop Maize is any month other than December contract whereas new crop is only December contract which will be grown this summer and harvested in October and sometimes there is difference in price even between old crop and new crop because we will harvest about 14 billion bushels in October, that’s why Why December corn may be less than May corn because that was the old crop that was harvested last October also had a different supply situation.
Many agricultural commodities, including grains, meats, coffee and cotton, are affected by both the old crop and the new crop, so if you need help figuring out which month you should trade, feel free to call me anytime. And I’ll be more than happy to make sure you’re trading the right month.
If you would like to contact Michael Seery (CTA – Commodity Trading Advisor) at 1-630-408-3325, I would be happy to assist you with your trading or visit. www.seeryfutures.com
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