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Pits Will Open Early for USDA Reports

Posted on Posted in Top Ag Headlines Tagged with ,

The Chicago Board of Trade has received the okay to start open-outcry grain trading early on the days major agricultural reports are issued. After a 10-day review of the CME Group’s plan to begin pit trading at 7:20 Central time when USDA issues major reports – rather than the traditional opening time of 9:30 – the Commodity Futures Trading Commission did not object to the change. The change tookeffect Tuesday morning. USDA released a crop production report at 7:30 Central time. It will mark the first time the markets are open for a key USDA report.
 

Given that traders previously had two hours to review the reports before trading began – now there is concern volatility could spike as traders try to digest the data as quickly as possible. Floor traders actually pushed for the change after the CME implemented the nearly non-stop electronic trading cycle for its grain markets. They were concerned they would miss out on business if electronic trading was open when the USDA reports were issued while the pits were closed.


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