USDA Shutdown Halts Crucial Grains Market Guidance
The USDA's World Agricultural Supply and Demand Estimates (WASDE) report will not be released due to the ongoing US government shutdown, leaving the grains industry without official supply and demand numbers to guide their decisions in the stock market today.
The USDA's World Agricultural Outlook Board (WAOB) is responsible for creating and publishing the WASDE report. However, due to the shutdown, many government agencies, including parts of the USDA, have temporarily ceased operations. This includes the departments involved in data collection and component delivery for the WASDE, such as the Economic Research Service (ERS) and the National Agricultural Statistics Service (NASS).
In the corn market, the National Corn Index ($CNCI) was priced at $3.8125, indicating large available supplies in relation to demand. Meanwhile, the Dec-July futures spread for corn covered 41% of the full commercial carry, suggesting a solid demand outlook. The November soybean contract (ZSX25) was down 4.0 cents pre-dawn, taking a breather from the past week's rally. Despite this, the US soybean fundamentals were more bearish than a year ago, with the outlook for demand not great.
The grains industry is left without crucial official supply and demand numbers due to the US government shutdown, affecting their decisions in the stock market today. While the corn market shows signs of solid demand, the overall outlook for soybeans is bearish. Traders and producers must navigate the market without the guidance of the latest WASDE report.
