The Commodity Futures Trading Commission (CFTC) is seeking public comment on requests to eliminate federal speculative positions for certain agricultural futures and option markets, according to wire reports.
Federal limits set and enforced by the CFTC restrict the size of positions that may be held by speculators in the following futures and option markets: CBT corn, oats, soybeans, wheat, soybean oil, and soybean meal; KCBT hard winter wheat; MGE hard red spring wheat and white wheat; and NYBOT cotton No. 2.
Farm Progress Marketing and Management Editor Arlan Suderman explains that if speculative limits are eliminated it would give the fund managers increased influence on the markets as more money flows into the commodities. "We would likely see increased price volatility, which adds up to both opportunity for those who understand the markets and frustration for those who do not," he says.
Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange have been asked to comment on the limits.