CFTC Chair Giancarlo Explains "Market-Based Price Discovery" in the Agriculture Sector

At a CFTC co-sponsored Agricultural Commodity Futures Conference, CFTC Chair J. Christopher Giancarlo described how "market-based price discovery" is the key mechanism underpinning the American agricultural economy.

In his remarks, CFTC Chair J. Christopher Giancarlo stated that this is "one of the most difficult periods for the agricultural sector" in a generation, due to the low price environment for agricultural commodities. He said that the "unshakeable" resilience of American agriculture is grounded in a central mechanism that supports the American agricultural economy - "market-based price discovery." Speaking to federal, state and local regulators, he said: "as American farmers and ranchers seek to rebuild, or agribusinesses seek to reinvest after losses or restructuring of trade routes, they are relying on us and the markets for clear and undistorted price signals in order to help them make those important decisions."

Mr. Giancarlo also praised the various CFTC advisory committees for facilitating communication between the agency and market participants.