News 338 views last update:6 Aug 2012

US congress urged to stabilize agri markets

In a letter, the American Feed Industry Association (AFIA) asks the Members of Congress to provide stability to futures markets that specialize in agricultural commodities.

"The U.S. feed industry is the single largest purchaser and user of corn and soybeans, as well as their processed meals and byproducts. It is critical the grain, oilseed and ingredient commodity markets accurately reflect true supply and demand situations for these commodities," AFIA President and CEO Joel G. Newman writes in the letter.

Significant speculative interest in agricultural commodity futures markets exists today. "In some crops, the trading on a daily basis almost meets the entire U.S. crop volume, significantly adding to price volatility. The size and influence of these large financial players was never contemplated" during enactment of the original Commodities Exchange Act, Newman writes. 

AFIA submitted the letter to Senate Majority Leader Harry Reid (D-Nev.) and other members of the House and Senate leadership and agriculture committees. The letter was timed to coincide with Reid's introduction of S. 3268, the Stop Excessive Energy Speculation Act of 2008.

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