The Commodity Futures Trading Commission has decided to withdraw two "no-action" letters that provided exemptions to its own rules. The exemptions, enacted several years ago, resulted in Deutsche Bank and another investment firm exceeding speculative position limits on corn, soybeans and wheat, according to the American Feed Industry Association.
Joel G. Newman, AFIA president and CEO, praised the action saying that the decision will reduce the possibility of dramatic increases in grain prices, such as those seen in early 2008, that resulted from this particular type of trading.
AFIA continues to work directly with officials within the CFTC, the administration and Congress to recommend appropriate changes that will ensure commodity markets are effective for both agriculture and speculators.
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