WASHINGTON, D.C. — Because of recent changes in market trading hours at major commodity exchanges, the USDA announced May 29 it is reviewing likely changes in the release times of its key statistical reports.

“It is important that the USDA continue to ensure the integrity of its report release process, particularly as global exchanges move closer to 24-hour trading,” said Joseph Glauber, the USDA’s chief economist. “To this end, the USDA is reviewing our procedures and will solicit public input to determine the needs of those who use our data.”

The USDA’s National Agricultural Statistics Service (NASS) and World Agricultural Outlook Board (WAOB), which are responsible for the reports, will be seeking public comment on the release times and procedures of their major crop and livestock reports.

Among the reports subject to change in their release times are the World Agricultural Supply and Demand Estimates (WASDE), Acreage, Cattle, Cattle on Feed, Crop Production, Grain Stocks, Prospective Plantings, Quarterly Hogs and Pigs and Small Grain Summary.

In a May 10 letter to the Commodity Futures Trading Commission (CFTC), the National Grain & Feed Assoc. (NGFA) and the North American Export Grain Assoc. (NAEGA) had initially requested a 30-day public comment period to evaluate industry concerns related to the nearly 24-hour trading cycle, in response to the CME Group, Inc.’s action to close electronic trading in grain and oilseed from 2-5 p.m. (CST).

Although the NGFA and NAEGA withdrew their joint petition a week later, the two groups asked the CFTC to delay trading for stakeholder feedback. The NGFA and NAEGA cited concerns among many market participants that the scheduled release of the USDA reports during electronic trading hours could spike “market volatility and disadvantage some market participants,” due to delayed access to USDA report data, from such factors as lower Internet bandwidth speeds in rural areas.

The CME Group, the world’s largest futures exchange, will offer expanded Globex floor trading hours in its Chicago Board of Trade (CBOT) grain and oilseed futures and options markets during the USDA’s major report releases, which started May 20. The move will change the hours from the current 17 hours per day to 21 hours, from 5 p.m.-2 p.m. (CST) Sunday-Friday, pending CFTC approval.

But Intercontinental Exchange, Inc. (ICE), which first led the charge to expand trading hours, offered grain futures for the first time on its electronic exchange 22 hours a day on May 13, to compete with CBOT.

As a result, on May 21, ICE and CME, the Kansas City Board of Trade (KCBT) and MGEX (formerly Minneapolis Grain Exchange) all offered 22 hours-per-day trading. Previously, each of the exchanges had planned to close electronic trading from 4-6 p.m. (CST).

The NGFA and NAEGA also commended the KCBT for amending its expanded electronic trading, and expect the MGEX to soon follow.

CME said it would expand the hours of the open-outcry trading pits in Chicago on days when the USDA releases most major reports. 

This change takes the previous 9:30 a.m. Chicago time to 7:20 a.m., starting with the USDA’s June 12 WASDE and Crop Production reports. Open-outcry trading hours would continue to close at the same time, 1:15 p.m. (CST) Monday-Friday.

Other USDA report release dates that would be affected for the remainder of 2012 are: June 29 (Acreage); July 11 (WASDE and Crop Production); Aug. 10 (WASDE); Sept. 12 (WASDE and Crop Production); Oct. 11 (WASDE and Crop Production); Nov. 9 (WASDE and Crop Production); and Dec. 11 (WASDE and Crop Production).

CME said the major USDA reports that would initiate early opening include WASDE, Crop Production, Prospective Plantings and Acreage. Products included in the expanded hours are CBOT corn, soybeans, wheat, soybean meal, soybean oil, oats, and rough rice futures and options.

“This action by the CME Group (to amend its electronic trading hours) demonstrates the value of the ongoing collaboration between the exchange and users of grain and oilseed futures and options markets who rely heavily on the CBOT contracts to hedge market risk,” said Randall Gordon, NGFA acting president.

“This important change will provide time during normal business hours for grain, feed, grain processors and other merchants using grain and oilseed futures and options to reconcile their trading accounts and perform other required accounting and back-office operations.”

Gordon added the changes would “hopefully reduce the need to incur significant additional expense associated with hiring more staff or paying overtime to perform these important, necessary functions.”

Gary Martin, NAEGA president and CEO, said “the NAEGA and the NGFA strongly commend the CME Group for its willingness to listen to customer concerns and to respond to them in a positive way” after two weeks of continual discussions. The NGFA and NAEGA stated they will reach out to involve producer groups, the USDA, CFTC and other stakeholders in further discussions.

“We look forward to continuing to discuss with the CME Group, other exchanges and other interested parties, possible ways to address industry concerns about USDA reports being released during market hours,” the NGFA and NAEGA said in its May 17 joint letter commending CME for the change in hours.

In the coming weeks, the USDA expects to publish a notice in the Federal Register advising the public of the comment period. The current USDA release times of 8:30 a.m. and 3 p.m. (EST) will remain in effect until further notice, the department added.