The USDA was not able to deliver its market-moving crop report, usually described as its premier product, for 10 minutes as a consequence of a computer outage in Kansas City, prompting suspicions of profiteering within the grain market through the delay on Friday. The USDA apparently didn’t have a backup system to place the information on the web on time.
Corn costs closed higher on the Chicago futures market following the USDA report. Based mostly on a survey of 8,300 growers and spot-checks of fields, the USDA stated the corn crop was barely smaller than anticipated. A commodity dealer tweeted that costs started moving during the outage: “Corn up with the numbers delayed. Somebody knows.”
“USDA.GOV websites are briefly down for maintenance,” stated a message on the USDA website for the crop report quickly after the official launch time of noon ET on Friday. “We’re performing scheduled maintenance. We must be back on-line shortly.”
The delay was a black eye for the USDA, which has the aim of dependable and even-handed releases of taxpayer-funded info. There have been delays prior to now, starting from seconds to minutes, for the crop report to seem on USDA web site after launch however they drew little consideration as a result of information companies such as Reuters, Bloomberg, and Dow Jones filed stories from a “lockup” room at USDA headquarters. These reviews circled the globe nearly immediately. The USDA eliminated the lockup in August 2018, saying it might “level the playing field.”
Well-heeled trading homes with computerized trading may make thousands of dollars from the information studies through the “roughly 2 seconds” between the launch of the crop report and its companion WASDE report and their appearance on authorities’ websites, stated USDA when it shut down the lockup.