May 17, 2022

Companies Settle CFTC Charges for Wheat Futures Price Manipulation

The CFTC entered into a final agreement with two publicly-traded companies to settle charges for wheat futures price manipulation.

As previously covered, the CFTC charged the companies with devising and executing a scheme to manipulate the prices of the December 2011 wheat futures contract traded on the Chicago Board of Trade. As alleged, the companies sought to create a false demand for more than $90 million worth of futures contracts for wheat by unlawfully holding the futures positions in excess of speculative position limits and with no intention of sourcing the wheat.

As part of the agreement, the companies agreed to (i) an injunction barring them from violating any provisions of the Commodity Exchange Act in the future and (ii) a civil monetary penalty totaling $16,000,000 to be paid within 90 days of the Consent Order.