Today in corn and wheat

Discussion in 'Commodity Futures' started by Robertwiz, Mar 8, 2013.

  1. Hello,

    just wondering what was the cause of the 12.00 noon spike in wheat?

    Thanks
     
  2. BillyC

    BillyC

    Monthly WASDE report at noon. If you trade Ags you REALLY should know which reports and when they come out. Can cause 3-5% moves in them in seconds.
     
  3. Brighton

    Brighton

    Monthly USDA supply and demand report, currently being released at 11A CT.
     
  4. TraDaToR

    TraDaToR

  5. lx008

    lx008

    So are there people ever worry the USDA reports can cause insider tradings, like the data can be leaked to big players, like investment banks or those big players can buy some researchers to publish the data they want ?
     
  6. Brighton

    Brighton

    LX008 - I don't think so. I've followed these reports for a long time and I'm not aware of allegations concerning an illegal early release.

    More troubling to the trade currently:

    1. An idea - I think it was quickly squashed - to put the USDA data into a format that was even easier to read by machines and sell it to firms like Reuters and the high frequency trading companies. That was in the last six or twelve months.

    2. Ongoing doubt that the USDA's grain stocks reports are accurate, because there has been such a large increase in on-farm storage.

    3. Corn, lower quality wheat and DDGS (distiller's dried grain & solubles; a by-product of the ethanol production process) are all used for livestock feed. There seems to be a never-ending debate about whether the USDA is getting the feed numbers right.