USDA Report Wednesday 11:00 AM
The USDA will release the September Supply Demand Report Wednesday morning at 11:00. It was a while ago that the USDA would release their reports at 7:30 am Central Time. The point is the markets were closed. That meant everyone, end users, farmers, speculators all had a chance to go through and analyze the numbers before the markets opened at 9:30. Now if there is a surprise we can see big swings shortly after the release of the report.
It has occurred when the U.S. numbers were bullish we move sharply higher. Then when traders see the world numbers that were bearish we drop like a stone. It has gotten more pronounced with computers and millisecond traders. Computers are programed to search for key words or phrases that may be bullish or bearish. Then computers sell or buy contracts, thousands of contracts resulting in big swings up and down.
I think it would level the playing field or be more fair if the USDA Reports were released when the markets were closed. The USDA Reports are pages and pages of numbers. Large brokerage firms and the funds have the computer programs and many analysts that can each take a page or section of the report and be the first to respond. They can get ahead of any moves in the market. That is why I think the USDA reports should be released during the trading session!