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Get Ready for ‘Explosive’ Grain Market as Shutdown Quiets USDA

Bloomberg logoBloomberg 12/31/2018 Lydia Mulvany

Corn is unloaded from a John Deere combine harvester into a grain cart during harvest near Peru, Illinois.© Daniel Acker/Bloomberg Corn is unloaded from a John Deere combine harvester into a grain cart during harvest near Peru, Illinois. More grain volatility is on the way as a lack of U.S. federal data sends the market hunting for crop information to trade on.

That’s according to Steve Georgy, the president of agriculture broker and advisor Allendale Inc. A partial government shutdown means most key reports -- including figures on export sales -- released by the U.S. Department of Agriculture have been halted. Given the thin holiday trading, last week the dearth of information sent investors to the sidelines, he said.

After the New Year, however, Georgy said traders are going to turn to the media and to Twitter to make up for the lack of government information, and that will lead to higher volatility.

As funds do their usual start-of-year rebalancing, “a lot of money is going to be moved around,” he said.

“You have nothing that is tangible from the government, and it’s all hearsay, so it’s more explosive,” Georgy said.

Related video: Government shutdown by the numbers as stalemate stretches on (provided by NBC News)

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