As the partial U.S. government shutdown enters its second week, the lack of data from the U.S. Department of Agriculture is sending market participants to Twitter and other sources to gather crop information.
Most of the department’s key reports -- including figures on export sales -- have been halted since the shutdown began on Dec. 22. Given thin holiday trading last week, the dearth of information sent investors to the sidelines, according to Steve Georgy, the president of agriculture broker and adviser Allendale Inc., based in McHenry, Illinois.
After the New Year, however, Georgy said traders are going to turn to the media and to Twitter to make up for the lack of government information, and that will lead to higher volatility.
The only major crop report that’s scheduled to continue during the shutdown is the weekly data on grain-export inspections, typically published on Mondays at 11 a.m. in Washington. The USDA’s Foreign Agricultural Service, which produces ad-hoc export sales notices and a weekly export report, has ceased publications.
As funds do their usual start-of-year rebalancing, “a lot of money is going to be moved around,” he said. “You have nothing that is tangible from the government, and it’s all hearsay, so it’s more explosive.”
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