CFTC Approves Wider Swings for Corn Prices (link to news article)
August 9, 2011
The CFTC approved a plan to allow wider price swings in the futures market for U.S. corn, ruling the Chicago Board of Trade can let corn futures rise or fall by as much as 40 cents a bushel on a given day, up from the current limit of 30 cents.
CME Group, which owns the grain exchange, requested the increase following a sharp rise in corn prices over the last year. The surge in futures has caused trading to halt frequently as prices bump against the limit. The exchange faced opposition from livestock producers, farmers and food companies, who warned the larger limit would increase volatility in the corn market and raise the amount of cash they must set aside to meet margin requirements. CME has said the concerns were unfounded.
Cross References
CEA Sec. 5c(c)