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Trading USDA Reports Instantly

03/29/2011 @ 12:04pm

CHICAGO, Illinois (Agriculture.com)--U.S. farmers that don't want to wait until 9:30amCST to trade the USDA Report Thursday, don't have to. As soon as the USDA Planting Intentions Report is released at 7:30am CST, a trade can be made instantaneously on the NYSE Liffe Exchange's wheat, rapeseed or corn contracts.

The U.S. hours of trading for the NYSE Liffe Exchange are 3:45am to 11:30am.

Based in London, the Liffe Exchange is openly trading as the USDA report is released. This offers the first opportunity for the Report numbers to be traded around the world vs. waiting for an opening bell at 9:30am CST.




"Keep in mind, farmers would be able to execute a trade on the Paris milling wheat contract, not the Kansas City, Minneapolis or Chicago contracts," Dayre Lashnits, U.S. Commodity Sales  Manager for NYSE Liffe, based in Chicago, says.

The Liffe Exchange wheat contract is a grain product similar to the Kansas City Hard Red Winter Wheat product, containing an 11-12% protein level.

The Liffe's wheat contract's average daily trading volume is 25,000, compared to Kansas City's average volume of 20,000 and the CME Groups 83,000.

"After the USDA's January 12, 2011, Report, the NYSE Liffe Exchange's wheat contract traded 5,000 contracts in the thirty minutes following the 7:30am CST release. That was 34% of that day's volume. The March contract's price jumped from $255 Euro to $259 Euro. That was a significant reaction to the report," Lashnits says.

Lashnits adds, "The price movement’s reaction to the report is similar to price action in the US exchanges.  The 'battle for acres' rings true in Europe, much like in the United States. So, Thursday's big market moves are expected here, as well."

On the Liffe Exchange, one contract equals 1,687 bushels. The margin requirement is $1,200 Euro per contract.

Regarding the world wheat production, Europe grew 140 million metric tons in 2009, 20% of the world's total production of 673 million metric tons. France, Germany and the United Kingdom are the major wheat-growing countries in Europe.

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