The View from the US: According to media reports, livestock markets across the US are reeling from this week’s disruption of data from the US Department of Agriculture (USDA) as the federal government shutdown drags on, while grain traders are working through without a key report on weekly export sales.
“It’s a bigger deal for the livestock traders as they rely on daily numbers – slaughter, wholesale pork and beef prices. On the grains, you’re missing more of the big picture,” said Don Roose, president of Des Moines-Iowa brokerage US Commodities, to Reuters News Agency.
The USDA, which issues thousands of market reports that the agricultural industry relies on to price everything from hogs and cattle to soybeans and corn, pulled the plug on those reports on Tuesday when the Government shut down.
Daily USDA market data is used by meat packers to determine how much they pay livestock producers for their cattle and hogs. The CME Group counts on government livestock values to calculate the final price for its lean hog and feeder cattle futures contracts at expiration.
In addition, Thursday’s USDA weekly exports sales report – which summarises the previous week’s export business – was also on-hold.
Additional reporting Reuters
Image Shutterstock
