The National Grain and Feed Association (NGFA) today submitted its statement to USDA as part of its 30-day comment period on report release times. In its statement, NGFA said it strongly supports a one-hour pause in trade around the report release time. "We are very concerned that releasing major reports during trading hours will create significant new volatility in markets, especially when there is something unexpected in the data," said the group. "A pause would help facilitate a rational review of the data and, perhaps, less volatility when markets re-opened."
NGFA said a pause would serve the following purposes:
- Help ensure timely and more equal access to a wide range of market participants. We are deeply concerned that producers and smaller business operators without high-speed Internet access and/or sufficient personnel dedicated to immediate report downloads may be put at a significant disadvantage.
- Provide a short period of time in which to analyze the data contained in NASS and WAOB reports before trading resumes. Such data is relied on by NGFA-member firms to manage their risk. A pause would allow firms to prepare for potentially dramatic moves based on NASS and WAOB reports.
Link to full NGFA statement.
USDA's comment period ends today.