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Palouser
Senior Advisor

Misreporting of sales for soybeans

Apparently there was significant violations for daily reporting of sales of soybeans this week. The weekly total was correct but it's required companies report daily sales over 100,000 tns.

 

The USDA sends notices to companies that improperly report but don't usually penalize companies uless they 'knowingly' fail to report sales. Hmmmm. Since everyone knows daily reporting is required for certain quantities - how hard is it to do that, especially if it is a single sale, which is likely? Is the USDA investigating or just letting the companies give an excuse for the obvious? Just a 24 hr de3lay or delaying all the way to the end of the week?

 

Now, figure out who benefits non reporting on a daily basis during the course of a single week. And a substantial weekfor sales!

 

I'd like to hear a rational explanation or at least an apology or excuse? Let's face it. Otherwise it just gets to be the way it's done. Actually, the company not reporting correctly should be named. And how large the violation was.

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12 Replies
BA Deere
Honored Advisor

Re: Misreporting of sales for soybeans

It`s the dozens of little gimmicks like that gives me no confidense in these reports. You just know there are some insiders making out like bandits.  The rest of us, marketing is just a roulette wheel with the appearance of information.   The heck of it is our southern hemisphere friends will be enticed to keep rollin` with $10 beans.

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sw363535
Honored Advisor

Re: Misreporting of sales for soybeans

Pal,  
Think a minute.

 

How could it be in the report if it was not reported.  Obviously the usda knew or the report would be wrong.

 

Or are you saying that "the trade" is supposed to get the daily reports so they know what the report says ahead of the producers??

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sw363535
Honored Advisor

Re: Misreporting of sales for soybeans

BA  

 

Please tell me you didn't just complain about the bean market going up'

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BA Deere
Honored Advisor

Re: Misreporting of sales for soybeans

Smiley Very Happy  you caught me SW, after I sell the market is supposed to go down, right? Now I sold cheap beans (as the gurus recommended) now I get to buy high priced soymeal. I swear just do exactly opposite of me and your yard will be full of new paint with money left over to buy a 80 for cash. Smiley Happy

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sw363535
Honored Advisor

Re: Misreporting of sales for soybeans

We are more alike than you know.   buit right now all your getting from me is an uncontrolable giggle.  Smiley Happy

 

 

 

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Palouser
Senior Advisor

Re: Misreporting of sales for soybeans

Read what I wrote. The weekly total was correct. But sales over 100,000 tns need to be declared within 24 hrs.

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Palouser
Senior Advisor

Re: Misreporting of sales for soybeans

USDA confirms large weekly soy sales, some missed daily reporting - RTRS

23-Oct-2014 12:28

By Christine Stebbins

CHICAGO, Oct 23 (Reuters) - Surprisingly large weekly U.S. export sales of soybeans reported by the U.S. Department of Agriculture on Thursday were correct, but a sizable share should have been posted in its daily sales announcements, a senior USDA official said.

"These sales are correct. A sizable portion of these sales were optional origin sales that were changed to U.S. origin," Peter Burr, chief of the exporting branch of USDA's Foreign Agricultural Service, said in an email.

"Some of these were late sales. But we also found out that a sizable share should have been reported as dailies," Burr said. "If they miss that deadline by much we typically ask that they include the sales in their weekly report. This doesn't happen often but does," he added.

Burr was responding to inquiries by traders who were stunned by USDA's weekly sales figures confirming 2.2 million tonnes of soybeans were sold by U.S. exporters during the week ended Oct. 16. Of those, 1.7 million were to China, by far the dominant buyer of U.S. soy exports.

Traders flagged immediate questions about the sales since the USDA had not reported any sales to China last week under its daily sales reporting system put in place after the market-jolting sales of U.S. wheat and corn to Russia in 1972 by a small number of large exporters. Higher food prices in the U.S. were later tied to the sales.

By law, exporters must report "promptly" the sale of 100,000 tonnes or more of a commodity, or 20,000 tonnes of soyoil, to the same destination within 24 hours of the sale. Sales of smaller amounts are reported on a weekly basis.

"The bottom line is the sales are legitimate. That's what counts and could partly explain the rally that we have seen since the lows at $9.04 in November beans," said Anne Frick, senior oilseeds analyst with Jefferies Bache in New York.

USDA said it tracks "misreporting" and regularly sends notices to exporters of the reporting responsibilities but does not typically charge penalties for late reporting.

"But there are penalties included in the law if an exporter 'knowingly' fails to report," Burr said in his email, declining to comment further.

"This isn't the first time that we've had surprising exports sales, given a lack of daily reporting, and it probably won't be the last time either," Frick said.

 

(Reporting by Christine Stebbins; Additional reporting by Julie Ingwersen; Editing by Richard Chang) ((christine.stebbins@thomsonreuters.com; 312-408-8720; Reuters Messaging: christine.stebbins.reuters.com@reuters.net))

 

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Palouser
Senior Advisor

Re: Misreporting of sales for soybeans

USDA confirms large weekly soy sales, some missed daily reporting - RTRS

23-Oct-2014 12:28

By Christine Stebbins

CHICAGO, Oct 23 (Reuters) - Surprisingly large weekly U.S. export sales of soybeans reported by the U.S. Department of Agriculture on Thursday were correct, but a sizable share should have been posted in its daily sales announcements, a senior USDA official said.

"These sales are correct. A sizable portion of these sales were optional origin sales that were changed to U.S. origin," Peter Burr, chief of the exporting branch of USDA's Foreign Agricultural Service, said in an email.

"Some of these were late sales. But we also found out that a sizable share should have been reported as dailies," Burr said. "If they miss that deadline by much we typically ask that they include the sales in their weekly report. This doesn't happen often but does," he added.

Burr was responding to inquiries by traders who were stunned by USDA's weekly sales figures confirming 2.2 million tonnes of soybeans were sold by U.S. exporters during the week ended Oct. 16. Of those, 1.7 million were to China, by far the dominant buyer of U.S. soy exports.

Traders flagged immediate questions about the sales since the USDA had not reported any sales to China last week under its daily sales reporting system put in place after the market-jolting sales of U.S. wheat and corn to Russia in 1972 by a small number of large exporters. Higher food prices in the U.S. were later tied to the sales.

By law, exporters must report "promptly" the sale of 100,000 tonnes or more of a commodity, or 20,000 tonnes of soyoil, to the same destination within 24 hours of the sale. Sales of smaller amounts are reported on a weekly basis.

"The bottom line is the sales are legitimate. That's what counts and could partly explain the rally that we have seen since the lows at $9.04 in November beans," said Anne Frick, senior oilseeds analyst with Jefferies Bache in New York.

USDA said it tracks "misreporting" and regularly sends notices to exporters of the reporting responsibilities but does not typically charge penalties for late reporting.

"But there are penalties included in the law if an exporter 'knowingly' fails to report," Burr said in his email, declining to comment further.

"This isn't the first time that we've had surprising exports sales, given a lack of daily reporting, and it probably won't be the last time either," Frick said.

 

(Reporting by Christine Stebbins; Additional reporting by Julie Ingwersen; Editing by Richard Chang) ((christine.stebbins@thomsonreuters.com; 312-408-8720; Reuters Messaging: christine.stebbins.reuters.com@reuters.net))

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Palouser
Senior Advisor

Re: Misreporting of sales for soybeans

Weird! My attempts to post the article are being removed as soon as I post it. Got me.

 

Yes, traders have access to daily sales.

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