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To batch or not to batch? The release of USDA crop reports

Author

Listed:
  • Joshua Huang
  • Teresa Serra
  • Philip Garcia
  • Scott H. Irwin

Abstract

In 2012 USDA began releasing crop reports during trading hours. Prior reports were released during a trading halt, and in the electronic trading platform traders competed in a batch auction for 2 h. Compared to the current real‐time release policy, the batch auction reduced speed advantage, lowered market volatility, and improved liquidity around report releases, at the cost of delaying price discovery. The results reported here support the argument that the development of a shorter batch auction could improve on the lengthy price discovery process while maintaining the batch auction's other advantages. These findings are relevant to not only developed countries with well‐established exchanges and public information systems, but to developing countries who have recently launched or are planning to launch futures commodity markets.

Suggested Citation

  • Joshua Huang & Teresa Serra & Philip Garcia & Scott H. Irwin, 2022. "To batch or not to batch? The release of USDA crop reports," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 143-154, January.
    • Handle: RePEc:bla:agecon:v:53:y:2022:i:1:p:143-154
    DOI: 10.1111/agec.12667
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    References listed on IDEAS

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    Cited by:

    1. Carè, Rosella & Cumming, Douglas, 2024. "Technology and automation in financial trading: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 71(C).
    2. Zhepeng Hu & Mindy Mallory, 2025. "Overseas Impact of USDA Reports: Evidence From Chinese Soybean Complex Futures," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 45(11), pages 2109-2127, November.
    3. Olga Isengildina Massa & Berna Karali & Scott H. Irwin, 2024. "What do we know about the value and market impact of the US Department of Agriculture reports?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 698-736, June.
    4. Berna Karali & Olga Isengildina‐Massa & Scott H. Irwin, 2025. "Is Being Bold Better? Industry Expectations of USDA Corn and Soybean Production Estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 56(5), pages 802-822, September.
    5. Xinyue He & Teresa Serra, 2022. "Are price limits cooling off agricultural futures markets?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1724-1746, October.
    6. Yamamoto, Shuhei & Janzen, Joseph P. & Serra, Teresa, 2024. "Autopsy of a futures market failure: Japan’s Dojima rice futures in the early 21st century," Food Policy, Elsevier, vol. 128(C).

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