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Monday 21 January 2019

US delays key agriculture reports due to government shutdown

FILE PHOTO: FILE PHOTO: Farmer Lucas Richard of LFR Grain harvests a crop of soybeans at a farm in Hickory, North Carolina, U.S. November 29, 2018. REUTERS/Charles Mostoller/File Photo/File Photo
FILE PHOTO: FILE PHOTO: Farmer Lucas Richard of LFR Grain harvests a crop of soybeans at a farm in Hickory, North Carolina, U.S. November 29, 2018. REUTERS/Charles Mostoller/File Photo/File Photo

The US Department of Agriculture (USDA) delayed several major domestic and world crop reports because of the two-week-old partial government shutdown, the agency said this week.

New release dates for the monthly World Agricultural Supply and Demand Estimates report and other data originally scheduled for Friday, January 11, will be set once government funding is restored, USDA said.

Traders regard the supply and demand report as the gold standard for crop forecasts. Its release often roils Chicago Board of Trade grain and soy futures and sets price direction. Farmers rely on the data when planning for planting and harvesting.

“This all just adds to uncertainty,” said Dan Basse, president of AgResource Co in Chicago. “Whether it’s sales or Chinese demand or anything, we are shooting in the dark.”

In November, the USDA lowered its 2018 yield estimates for the U.S. corn and soybean crops, and Basse said traders expect further reductions in January.

Aside from U.S. forecasts, the report includes USDA’s latest fix on everything from corn and soy production in major exporters Brazil and Argentina to projected wheat exports from top suppliers such as Russia, the European Union, Argentina and Australia.

Also delayed are a quarterly report on U.S. grain stocks, a final U.S. crop production report for 2018 and USDA’s report on winter wheat seedings for harvest in 2019.

“Everybody needs a god, if you will, and in the grain world, the USDA tends to be that” for data and statistics, Basse said.

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The shutdown was triggered last month by President Donald Trump’s demand for $5 billion to fund a U.S.-Mexico border wall. Democrats who now control the House of Representatives have vowed to fund the government through legislation, but Trump has insisted that any plan include money for the wall.

Trump and congressional leaders were to meet on Friday to discuss breaking the impasse. About one-quarter of the federal government, including many workers from USDA, are off the job.

Farmers already battered by the U.S.-China trade war may also face delays in crucial aid and loan payments from the federal government because of the shutdown.

Reuters





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