Sign up
Log in
George
USA-Gov't Shutdown/CME
FILE: Chicago, Illinois, USA - 2018 (CCTV - No access Chinese mainland)
1. People, statues inside Chicago Board of Trade
2. Clock, sign reading "Chicago Board of Trade"
Chicago, Illinois, USA - Jan 18, 2019 (CCTV - No access Chinese mainland)
3. Chicago Mercantile Exchange (CME) trader Virginia McGathey using computer
4. Various of USDA website showing data failure to update due to shutdown
5. SOUNDBITE (English) Virginia McGathey, CME trader:
"Without having federal data from the USDA, it makes it really difficult to see where we are and how we can engage the carryout, because normally we're watching shipments and where they're going, and all of that data is completely in the dark. So we're literally flying with blindfolders on."
6. Various of McGathey working at computer
7. SOUNDBITE (English) Virginia McGathey, CME trader:
"Everyone is looking to alternative new sources to find ways to find out what the supplies are, what the U.S. supplies are and what the world estimates are, and so we're using different countries, their governments are not shutdown, like Brazil and Argentina, and really a number of countries in South America, maybe even smaller ones that still have production."
FILE: Illinois, USA - Oct 2018 (CCTV - No access Chinese mainland)
8. Various of soybean fields
9. Various of soybean harvesters working in fields
Chicago, Illinois, USA - Jan 18, 2019 (CCTV - No access Chinese mainland)
10. SOUNDBITE (English) Virginia McGathey, CME trader:
"In a couple of months, it could possibly be nonexistent, yes, could be zero, so I would just have to trade on my own and not do any business. Everyone's just waiting, kind of just folding your hands, like waiting to get this going."
11. McGathey working at computer
The ongoing partial government shutdown cut access to key economic data and has left economists flying blind through the market turmoil, said one Chicago Mercantile Exchange trader.
The United States is one of the world's biggest grain producers and exporters, and the Chicago Mercantile Exchange (CME) is the world's largest commodity futures auction market where the trading of agricultural products has a great impact on the world grain supply and price.
Influenced by the shutdown that has so far lasted about one month, federal statistical agencies that produce a steady stream of reports on how the economy is doing, where investment is flowing, and who the United States is trading with, has slowed or stopped all data updates.
The Bureau of Economic Analysis and the Census Bureau, which belong to the Department of Commerce, have ceased providing updates and can only resume after Congress and the White House agree on a deal. The same is true of the United States Department of Agriculture (USDA), which produces data on crop production, prices and sales.
Virginia McGathey is a senior trader working in the CME for over 30 years. She said as the financial markets are swinging wildly, a data drought makes it difficult for them to analyze and estimate.
"Without having federal data from the USDA, it makes it really difficult to see where we are and how we can engage the carryout, because normally we're watching shipments and where they're going, and all of that data is completely in the dark. So we're literally flying with blindfolders on," she said.
McGathey said due to the lack of data, they have to resort to the time-consuming task of asking every source they can to find information. They are going to the harbor themselves to learn about the destinations of the supplies as well as use other countries' data.
"Everyone is looking to alternative new sources to find ways to find out what the supplies are, what the U.S. supplies are and what the world estimates are, and so we're using different countries, their governments are not shutdown, like Brazil and Argentina, and really a number of countries in South America, maybe even smaller ones that still have production," she said.
McGathey also said without having access to data, farmers are finding it difficult to judge how much they should sell crops, cattle or other supplies. Traders are becoming more prudent and thus transactions have dropped which greatly concerns her.
"In a couple of months, it could possibly be nonexistent, yes, could be zero, so I would just have to trade on my own and not do any business. Everyone's just waiting, kind of just folding your hands, like waiting to get this going," she said.
The shutdown started on Dec. 22 after Congress refused to grant President Donald Trump the 5.7 billion U.S. dollars of funding for his long-promised U.S.-Mexico border wall project.
USA-Gov't Shutdown/CME
Dateline : Jan 18, 2019/File
Location : Chicago,United States
Duration : 2'27
FILE: Chicago, Illinois, USA - 2018 (CCTV - No access Chinese mainland)
1. People, statues inside Chicago Board of Trade
2. Clock, sign reading "Chicago Board of Trade"
Chicago, Illinois, USA - Jan 18, 2019 (CCTV - No access Chinese mainland)
3. Chicago Mercantile Exchange (CME) trader Virginia McGathey using computer
4. Various of USDA website showing data failure to update due to shutdown
5. SOUNDBITE (English) Virginia McGathey, CME trader:
"Without having federal data from the USDA, it makes it really difficult to see where we are and how we can engage the carryout, because normally we're watching shipments and where they're going, and all of that data is completely in the dark. So we're literally flying with blindfolders on."
6. Various of McGathey working at computer
7. SOUNDBITE (English) Virginia McGathey, CME trader:
"Everyone is looking to alternative new sources to find ways to find out what the supplies are, what the U.S. supplies are and what the world estimates are, and so we're using different countries, their governments are not shutdown, like Brazil and Argentina, and really a number of countries in South America, maybe even smaller ones that still have production."
FILE: Illinois, USA - Oct 2018 (CCTV - No access Chinese mainland)
8. Various of soybean fields
9. Various of soybean harvesters working in fields
Chicago, Illinois, USA - Jan 18, 2019 (CCTV - No access Chinese mainland)
10. SOUNDBITE (English) Virginia McGathey, CME trader:
"In a couple of months, it could possibly be nonexistent, yes, could be zero, so I would just have to trade on my own and not do any business. Everyone's just waiting, kind of just folding your hands, like waiting to get this going."
11. McGathey working at computer
The ongoing partial government shutdown cut access to key economic data and has left economists flying blind through the market turmoil, said one Chicago Mercantile Exchange trader.
The United States is one of the world's biggest grain producers and exporters, and the Chicago Mercantile Exchange (CME) is the world's largest commodity futures auction market where the trading of agricultural products has a great impact on the world grain supply and price.
Influenced by the shutdown that has so far lasted about one month, federal statistical agencies that produce a steady stream of reports on how the economy is doing, where investment is flowing, and who the United States is trading with, has slowed or stopped all data updates.
The Bureau of Economic Analysis and the Census Bureau, which belong to the Department of Commerce, have ceased providing updates and can only resume after Congress and the White House agree on a deal. The same is true of the United States Department of Agriculture (USDA), which produces data on crop production, prices and sales.
Virginia McGathey is a senior trader working in the CME for over 30 years. She said as the financial markets are swinging wildly, a data drought makes it difficult for them to analyze and estimate.
"Without having federal data from the USDA, it makes it really difficult to see where we are and how we can engage the carryout, because normally we're watching shipments and where they're going, and all of that data is completely in the dark. So we're literally flying with blindfolders on," she said.
McGathey said due to the lack of data, they have to resort to the time-consuming task of asking every source they can to find information. They are going to the harbor themselves to learn about the destinations of the supplies as well as use other countries' data.
"Everyone is looking to alternative new sources to find ways to find out what the supplies are, what the U.S. supplies are and what the world estimates are, and so we're using different countries, their governments are not shutdown, like Brazil and Argentina, and really a number of countries in South America, maybe even smaller ones that still have production," she said.
McGathey also said without having access to data, farmers are finding it difficult to judge how much they should sell crops, cattle or other supplies. Traders are becoming more prudent and thus transactions have dropped which greatly concerns her.
"In a couple of months, it could possibly be nonexistent, yes, could be zero, so I would just have to trade on my own and not do any business. Everyone's just waiting, kind of just folding your hands, like waiting to get this going," she said.
The shutdown started on Dec. 22 after Congress refused to grant President Donald Trump the 5.7 billion U.S. dollars of funding for his long-promised U.S.-Mexico border wall project.
ID : 8101311
Published : 2019-01-22 14:30
Last Modified : 2019-01-23 09:30:00
Source : China Central Television (CCTV)
Restrictions : No access Chinese mainland
More
