Government Shutdown Delays USDA October Crop Report

October 8, 2013. The USDA was scheduled to produce its October Crop Report on October 11^th. However, as a result of the government shutdown, the October Crop Report has been postponed until a yet to be determined time. The delay of the October Crop Report has the potential to roil financial markets around the globe. Furthermore, if the government shutdown continues to drag on, the USDA may decide to forgo issuing an October Crop Report.

The USDA’s Crop Report plays a central role in providing data concerning the status of numerous agricultural commodities grown in the United States. The data contained in these monthly crop reports plays a critical role in determining pricing for various grains and agricultural commodities. The information contained in the October Crop Report was expected to be especially valuable this year due to the fact that the corn and soybean crops matured later than normal and that the harvest of these two major commodities is now in full swing.

Without the valuable data contained in the monthly crop report, traders face substantially more risk as they make determinations concerning the pricing of the various agricultural commodities impacted by the delayed report. In the absence of a reliable and updated report from the USDA, traders are forced to rely on data from private companies.

In addition to the monthly crop report, other USDA reports have also been delayed and or cancelled. This includes a weekly report on farm exports, issued each Thursday, which is valuable for tracking global demand. As well as a weekly report from the Commodity Futures Trading Commission, which shows traders' positions in U.S. futures markets. Furthermore, a companion report to the monthly crop report known as the World Agricultural Supply and Demand Estimates (WASDE), which provides valuable information concerning the status of major crops around the world, will face likely delays as a result of the delayed production of the monthly crop report. For more information on ag law, contact Goosmann Law at info@goosmannlaw.com or 712.226.4000.