R-CALF USA Continues Market FightTue, 04 Jan 2011 17:06:11 CST
R-CALF USA has urged the Commodity Futures Trading Commission to use its rulemaking authority to fully restore the cattle futures market to its original purpose of affording U.S. cattle producers a useful marketing tool, void of distortion and manipulation by certain speculators and other dominant market participants. The urging came in submitted comments to the CFTC for its rulemakings. R-CALF USA again pointed out that U.S. cattle producers sell their cattle into one of the most highly concentrated marketing structures in the U.S. economy.
R-CALF USA CEO Bill Bullard wrote - cattle producers, some of whom use futures markets to offset price risk, are vulnerable to any market distortions caused by beef packers that may not only participate in the futures market as physical hedgers, but also as significant speculators as well. As a result, - cattle producers are particularly vulnerable to financial failure caused by both market volatility and market distortions.
R-CALF USA believes the CFTC should: 1) Make it unlawful for dominant beef packers to engage in speculative short selling; 2) Ensure the live cattle futures market is dominated by physical hedgers; 3) Impose effective speculative position limits across all markets; 4) Restore daily market price limits; and 5) Impose effective speculative position limits on all feed grain commodities markets.
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