Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   

Agricultural News


USDA Implement New "Lockup" Procedures to Ensure Equal Access to Crop and Livestock Reports

Wed, 11 Jul 2018 11:41:20 CDT

USDA Implement New The U.S. Department of Agriculture (USDA) has announced new procedures for the release of market-affecting crop and livestock reports from the National Agricultural Statistics Service (NASS) and World Agricultural Outlook Board (WAOB) to ensure that all members of the public have access to the information at the same time. Under current “Lockup” procedures, information is released to the public at 12:00 p.m. (Eastern), though the news media are allowed access approximately 90 minutes early, with their reports embargoed until the noon release time. Prompted by inquiries from the public, USDA examined the procedures and determined that technological advancements have afforded recipients of customized media reports a market advantage not enjoyed by members of the general public. The USDA also sought analytical assistance from the Commodity Futures Trading Commission to help inform a policy update to the lockup procedures. As a result, beginning August 1, 2018, USDA will provide media the same access to the NASS and WAOB reports as the public, with the information becoming available to all at 12:00 p.m. on days the reports are released.


“These reports are greatly anticipated each time they are released, and they can have significant market impacts,” said U.S. Secretary of Agriculture Sonny Perdue. “Everyone who has interest in the USDA reports should have the same access as anyone else. Modern technology and current trading tactics have made microseconds a factor. This change addresses the ‘head start’ of a few microseconds that can amount to a market advantage. The new procedures will level the playing field and make the issuance of the reports fair to everyone involved.”


Background: Current Process


USDA produces a number of reports with significant market impacts, such as commodity futures sold on the Chicago Board of Trade. Those reports are prepared by NASS and WAOB staff under special “lockup” conditions at USDA: no electronic transmission devices are permitted into lockup (such as cellular telephones) and once people enter the lockup they cannot leave until the reports are sent out to the public at 12:00 p.m.


The public is allowed to enter lockup at 10:30 a.m. to hear about the lockup facility and to sit in on the data briefing that occurs at approximately 11:45 a.m. Again, no transmission devices are allowed into lockup and the public is not allowed to leave until 12:00 p.m.


Lock up is open to any media outlet that meets a set of strict standards. Currently, six news services participate in lockup and are given pre-access to reports: Associated Press, Dow Jones/Wall Street Journal, Thompson Reuters, Market News Int’l/Deutsche Boerse, Bloomberg News, and DTN/Progressive Farmer.   


- The media are provided an electronic copy of the report at 10:30 a.m.

- The media write their articles and other custom reports between 10:30 a.m. and 12:00 p.m.

- The media transmit their information at 12:00 p.m.


It takes USDA data roughly 2 seconds to be transmitted and posted for the public to read. Meanwhile, press organizations have access to high-speed fiber optic lines out of the USDA lockup and advertise paid services to clients that offer ‘ultra-low latency’ data transmission speed. They have approximately 90 minutes to distill the reports down to their clients’ needs.


There is evidence to suggest that there is significant trading activity worth millions of dollars that occurs in the one to two second period immediately following 12:00 p.m., which could not be based on the public reading of USDA data. The inference is that private agents are paying the news agencies for faster data transmission to get a jump on the market.



Source - USDA




   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Kim Anderson Addresses Oklahoma's Changing Price/Planting Relationships Among Our Major Crops  Thu, 19 Jul 2018 16:36:53 CDT
  • Lesser Prairie-chicken Numbers Improve Again in Annual Survey by OK Dept. of Wildlife Conservation  Thu, 19 Jul 2018 15:43:33 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Thursday, july 19, 2018  Thu, 19 Jul 2018 14:54:05 CDT
  • Thursday Market Wrap-Up with Justin Lewis  Thu, 19 Jul 2018 14:24:31 CDT
  • Thursday Afternoon Market Wrap-Up with Carson Horn   Thu, 19 Jul 2018 14:18:37 CDT
  • Heat Dome Over Oklahoma Doing Little to Help State's Expanding Drought Situation This Week  Thu, 19 Jul 2018 12:35:31 CDT
  • American Pecan Council’s New Executive Director Alex Ott Says Pecan Industry has a Bright Future  Thu, 19 Jul 2018 12:12:50 CDT
  • All Eyes on Placements this Friday as Industry Anticipates USDAs Release of Cattle Inventory Reports  Thu, 19 Jul 2018 11:36:39 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.