The National Grain and Feed Association issued a letter to the USDA asking for a trading halt for one hour after the release of key U.S. Department of Agriculture crop reports.
In their letter, the group acknowledged that such a change is likely beyond the control of the USDA, but stated that USDA has a clear interest in the matter. NGFA, representing grain elevators and grain processors, asked to work with the USDA, Commodity Future Trading Commission and exchanges to reach a solution.
The USDA is seeking comments on the timing of its reports on grain supply and demand as the agency considers changing release times.
The markets have historically not traded upon release of the USDA reports, but that changed in June, after CME Group Inc. and IntercontinentalExchange Inc. implemented expanded grains trading hours.
“A pause would help facilitate a rational review of the data and perhaps less volatility when markets reopened,” the NGFA said.
The corn futures market swung wildly in the immediate aftermath of the latest USDA report on June 29. The market swung approximately 30 cents in the first hour, establishing what would be the high and the low for the day.