cancel
Showing results for 
Search instead for 
Did you mean: 
Palouser
Senior Advisor

Re: Misreporting of sales for soybeans

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.

0 Kudos
Palouser
Senior Advisor

Re: Misreporting of sales for soybeans

This system is how analysts make estimates on sales.

 

USDA FAS site: "Large sales of certain designated commodities (which must be reported by 3:00 p.m. on the next business day after the sale is made) are summarized and released to the general public through a Departmental press announcement at 9:00 a.m. the following business day."

0 Kudos
sw363535
Honored Advisor

Re: Misreporting of sales for soybeans

No sense in being inconvenienced by the regulations we won't inforce,  but remember      we can.      Smiley Happy

 

no work like government work..........  Smiley Happy

 

we should be getting a list of those fined this week.

 

The trade guess ranges have looked strange for a long time now.  ?////?

0 Kudos