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Price Futures Group’s Phil Flynn on the impact on commodity trading and farmers of the USDA suspending some agriculture reports due to budget cuts.
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Are right now potential pricing pandemonium in the milk -- dairy markets the USDA is once again sounding the sequester alarm.
This time though -- announcing that they're suspending.
At least ten of their agriculture reports including the critical milk production report that the dairy industry.
Uses for pricing and marketing decision experts say this could actually wreak Havoc on the industry.
We are all going to feel it no matter which way it goes for more on this one we are -- When you account executive with price futures group and a Fox Business contributor are.
We okay first what market perspective how important are these reports because I'm thinking.
Was -- movie trading places you know they're all waiting for the orange grunt -- or no.
You're gonna have tweeters walking around here like zombies waiting for something that happened that isn't gonna happen -- -- -- to do.
I mean this is very dangerous -- is going to be walking the streets without knowing whether to put their hands this -- that way it's going to be a lot of confusion.
But you know to be honest with the I think the people that are really concerned and -- the dairy farmers themselves they're the ones I think that are really gonna get upset right now.
Traders usually find a way to make the best out of the bad situation.
But you know at the end of the day -- these these farmers that are produced in the milk producing the cheese.
That make decisions on their likelihood based upon these reports.
And opinion on which way these reports -- they may produce more milk they may produce lasting may produce more cheese and if they don't do that correct way.
You know that may put them out of business yeah it could lead to a serious financial loss of for them it's bad for traders -- probably find something else to trade.
I mean -- it strikes me as ridiculous -- we go through the list of sort of if things that are being.
You know cannot hold because of the sequester in the things that aren't.
Honesty is at least ten -- reports from the USDA are -- going out.
You know reminds me of the -- -- -- poultry safety inspections that we're not doing and and the White House tours.
At the same time you were doing the sugar -- that we talked right here on the show yesterday -- spending fifteen million dollars on new uniforms for the TSA.
It just -- we -- about those two new combat ships that are out there as well so it's it's it's sort of it's I'm glad I'm here to me how we're deciding.
What we're doing and what not but it sounds like I think this is a big deal god.
Now why -- they're just might mean these things where they can cause the most frustration for also the president gets his way.
You know if if you start to get upset with -- think that this you know these spending cuts actually.
You know make their day more difficult you know they're hoping for this huge uproar you know to force everybody to see things the president's way.
You know but I think in reality it's costing a lot of anger from people that are being inconvenienced.
You know for the wrong reason.
You know listen -- -- what when it comes to these Greg reports -- if you're catfish farmer here back in a report.
That's a big deal but for most Americans that isn't but.
From Wal-Mart my point not only can't predict -- what I expect as a visitor I'm somebody who buys a lot of -- -- a -- out every week what -- the -- -- yeah.
Well you know in that it could go either way if if milk producers think that the demand is stronger than it really is so produce milk.
It'll end up getting -- it'll get thrown away if it's now bought.
In -- and the other way could lead to shortages down the road you know -- in the beginning it is so he could drive prices dramatically higher.
Or dramatically lower because they can't get the information.
It's going to make the market less sufficient it's gonna make the dairy farmers focus.
More on things that you know easy -- you know spend more time trying to get information.
-- the type of business they need to do as supposed to actually doing business so it's it's just gonna make their -- more difficult but luckily we're gonna have those new TSA uniform so.
You know -- seen those uniforms they need new uniforms they're bad programs that fell -- thanks so much --
