No WASDE This Month: Will China Buy Soybeans During the USDA Data Reporting Freeze?

NASHVILLE, Tenn. (RFD-TV) — The markets will be without a major monthly report from the U.S. Department of Agriculture (USDA). We are talking about the WASDE report that should have been released on Thursday, but is now on hold due to the ongoing government shutdown.

In a large memo posted to the WASDE section of the USDA’s website, users are greeted with a message stating that the report is now suspended until further notice. Other reports are also on hold, with nearly half of USDA’s workforce in limbo until Congress appropriates the necessary spending. This includes information on overnight grain sales.

And without overnight data, that means the markets will be in the dark on purchases, including those by China. One market analyst tells us he would not be surprised if China bought some US soybeans while the information flow is shut off.

“Since then, what we’ve seen is renewed buying coming into the soybean market, and we’ve seen it in both futures and future spreads,” Darin Newsom explained. “And so, the big question last week, as I did all my interviews last week, was: How would we be able to tell without government guidance if the world’s largest buyer had stepped back in? Which they tend to do when the U.S. government shuts down because there’s no one reporting on their activity.”

He says there have been signs since the government shut down last week.

“We tend to see some business, albeit securing secondary supplies,” Newsom said. “How would we be able to tell what comes in the futures and what comes in the future spreads?”

For now, the October WASDE report is up in the air. In previous shutdowns, USDA never released those WASDE reports that had been delayed.

Related Stories
Labor is an ongoing crisis in the ag sector. One industry group outlines three vital reforms to the H-2A visa program that farmers need to secure an affordable, stable workforce.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report with his insights on the incident and a deeper dive into the issues at hand.
As the Trump Administration seeks out new global trade partnerships, Congress is considering more support for farmers, which comes as the Federal Reserve warns that farmers need a safety net.
Ag Secretary Brooke Rollins will travel to Europe and Asia to seek new trade partnerships for U.S. crops after China reduced imports due to tariffs.
Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s Market Day Report for a further look at the drop in replacement heifers and the trend’s longterm impact on dairy producers and cattle prices.

LATEST STORIES BY THIS AUTHOR:

Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.
Disease risks remain a key factor to watch heading into fall.
American Farm Bureau Federation (AFBF) economist Danny Munch explains how the Emergency Livestock Relief Program application process differs from other USDA aid programs.
According to the National Council of Farmers Cooperatives (NCFC), President and CEO Chuck Conner says, there is only one other option besides addressing ag labor shortages.
For rural communities, this shift could mean new housing options for farmworkers and young families priced out of metro markets.
The modest cut should slightly reduce borrowing costs on operating loans, land notes, and equipment financing for agriculture, giving some relief to producers under heavy debt loads.