NFU Calls on CFTC Chairman Gensler for Commodity Market Investigation

NFU Calls on CFTC Chairman Gensler for Commodity Market Investigation

Letter expands on a similar letter sent to the CFTC in February.

The National Farmers Union Board of Directors has called on Commodity Futures Trading Commission Chairman Gary Gensler to conduct an investigation regarding the extreme futures price volatility and lack of convergence in hog, grain, dairy and cattle markets. The letter sent by the board also urged the CFTC to look at the effects of concentration within the grain and livestock sectors.

 

Local elevators and other commercial users of the commodity markets quickly maxed out their lending limits last year and commercial users ended up backing away from offering producers critical forward marketing tools. This situation made it difficult for producers to protect their financial risk. In its letter to the CFTC the board also said the level of consolidation and concentration within every sector of agriculture is staggering.

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