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Springtime transition

Agriculture.com Staff 03/19/2010 @ 6:37am

Daylight Savings Time, snow melt and warmer temperatures-it's spring. This is also a fairly jumpy time as far as corn and soybean trading goes. There's a transition between old crop and new crop, exports decline in size and importance, and traders resume their habits of checking weather forecasts.

For soybeans, the transition is between tight old crop supplies and massive exports to a situation with much larger supplies as the 2010 growing season progresses. For example, it's been two weeks with much smaller weekly export sales for soybeans. Last week was actually a negative number and this week was a small positive-214,100 metric tons. China recently has been buying only new crop soybeans.

As far as the old crop/new crop transition goes, the important data of the week will be out this morning. During trading, Informa will release their most recent acreage survey numbers. With so many trading days until the March 31st Prospective Plantings report, these numbers will influence trading in the coming days.

Reactions to weather forecasts are also becoming more noticeable in trading action despite the fact that the calendar has not yet turned to April. However, stories regarding flooding continue on the daily television news. This is hard for traders to ignore. However, this year's flooding along the rivers is occurring earlier than last year. That does not mean that rain can not screw up planting, but it does give a larger time frame for potential planting versus earlier flood years.

The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial situation.

Daylight Savings Time, snow melt and warmer temperatures-it's spring. This is also a fairly jumpy time as far as corn and soybean trading goes. There's a transition between old crop and new crop, exports decline in size and importance, and traders resume their habits of checking weather forecasts.

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