CFTC Says Speculators Not Impacting Commodities
The New York Times is reporting the Commodities Futures Trading Commission has released a report that concludes speculators are not impacting oil prices and other commodities.
"As farmers confront mounting costs and riots erupt from Haiti to Egypt over food, Garry Niemeyer is paying the price for Wall Street's speculation in grain markets. Commodity-index funds control a record 4.51 billion bushels of corn, wheat and soybeans through Chicago Board of Trade futures, equal to half the amount held in U.S. silos on March 1. The holdings jumped 29% in the past year... Niemeyer, who farms 2,200 acres in Auburn, Illinois, won't use futures to protect the value of the crop he will harvest in October...he says the contracts are too costly and risky... 'It's the best of times for somebody speculating on grain prices, but it's not the best of times for farmers,' said Niemeyer... 'The demand for futures exceeds the demand for cash grains."
Now, isn't that ironic? Because the former head of the CFTC, Michael Greenberger, has laid out how markets are being impacted by speculators. (July 12th and earlier posts) So, how can the former head of the CFTC be at odds with the CFTC in his analysis? You get to figure that one out.
"As farmers confront mounting costs and riots erupt from Haiti to Egypt over food, Garry Niemeyer is paying the price for Wall Street's speculation in grain markets. Commodity-index funds control a record 4.51 billion bushels of corn, wheat and soybeans through Chicago Board of Trade futures, equal to half the amount held in U.S. silos on March 1. The holdings jumped 29% in the past year... Niemeyer, who farms 2,200 acres in Auburn, Illinois, won't use futures to protect the value of the crop he will harvest in October...he says the contracts are too costly and risky... 'It's the best of times for somebody speculating on grain prices, but it's not the best of times for farmers,' said Niemeyer... 'The demand for futures exceeds the demand for cash grains."
Now, isn't that ironic? Because the former head of the CFTC, Michael Greenberger, has laid out how markets are being impacted by speculators. (July 12th and earlier posts) So, how can the former head of the CFTC be at odds with the CFTC in his analysis? You get to figure that one out.
<< Home