CMC Letters to the CFTC on Ag Swaps

Yesterday, CMC sent the following letters to the CFTC on ag swaps. The first is CMC’s own letter and the second is a coalition letter that was led by CMC.

CMC Ag Swaps Letter Final

Ag Swaps Coalition Letter FINAL


Brussels Agrees Hedge Fund Rules

(Via Financial Times)

Tough rules for hedge funds and private equity funds were agreed in Brussels on Tuesday, ending almost two years of heavy industry lobbying and bruising political negotiations.

The package was hammered out by European parliamentarians, European Union member states and the European Commission over the past week, after France withdrew its objections to proposals.

Don’t Blame Speculators for Rising Soya Prices

(Via Financial Times)

Corn, soyabean and wheat prices, have rallied markedly over the last several months. The impact is being felt by consumers facing higher prices at the supermarket, companies whose margins have been squeezed and policymakers in emerging economies who are having to deal with sharply higher food inflation. As is often the case, some are blaming the participation of speculators for these moves higher.

But the truth lies in the numbers. While speculative long positions are at near-record highs, inventories have tightened meaningfully and to near-record lows in some cases. Even greater challenges lie ahead. Prices will need to move higher if a sustainable equilibrium is to be achieved as only higher prices will encourage farmers to devote much-needed extra land to these crops and this burden rests largely on emerging markets like Brazil. We have long argued that global corn and bean balances were tight, especially given the tendency of weather to surprise and that without higher prices production would fall short of demand, tightening balances to untenable levels.

K&L Gates Webinar: Analysis of Election 2010

(Via K&L Gates)

K&L Gates Webinar: Analysis of Election 2010

Date/Time: November 4, 2010 from 2:00 – 3:00 p.m. EDT

Location: Attend via webinar. Login directions will be distributed via email the day before the event.

RSVP: Click here to register online. Registration closes at 5:00 p.m. EDT on November 2.

Questions: If you have any questions, email Tracey Chuckas or call 202.778.9123.

Join us on Thursday, November 4, 2010 from 2:00 until 3:00 p.m. Eastern Daylight Time for a webinar with analysis on the mid-term election results and insights on how changes in the new Congress will impact major public policy issues.

Major policy topics likely to be covered include:

  • taxes
  • financial services
  • spending
  • healthcare
  • energy and environment

Time for questions and answers will follow the webinar presentation.

Some of the speakers with K&L Gates include:

On November 3 (the day after the election and the day before the webinar), you should also receive electronically from K&L Gates our booklet entitled Election 2010: A Guide to Changes in Congress. This will be a comprehensive guide that will list all new members elected to Congress, update the congressional delegations for each state, and provide a starting point for assessing the changes to the House and Senate committees.

New CFTC Comment Viewing Options

CFTC’s website has updated the Open Comment Periods and Proposed Rules pages to now have interactive links where users are able to click to view previously submitted comments by any person or organization.  Users are also able to submit comments directly to the site.  All comments submitted, whether via the website or by paper, are converted to PDFs for any user to view.

Where Are Gold Prices Going?

(Via CME Group)

Join us for this new online seminar where David Hightower will put current historic gold prices in context across many market sectors, and in turn highlight gold’s transition from a sleepy physical commodity back into one of the world’s most important financial vehicles. In the past, the gold market was a repository of risk, but in the current environment risk seems to be emanating from an ever widening circle of political, economic and monetary sources. Therefore it is no surprise that gold remains in vogue and is heavily featured in the headlines. Surprisingly, even with years of unprecedented global monetary easing underway, Mr. Hightower believes the prospect of inflation has only recently become a daily feature in the gold market and appears to be a factor which will ensure ongoing volatility and growing interest in gold in the months and quarters ahead.

Ethanol Updates

WASHINGTON, Oct 21 (Reuters) – The government is offering more than $1.5 billion in assistance, from field to filling station, to bring next-generation biofuels to market, Agriculture Secretary Tom Vilsack said on Thursday.
Vilsack said the aid would assure renewable fuel consumption reaches 36 billion gallons by 2022, with the bulk of it coming from non-food sources such as grass, algae or woody plants.


WASHINGTON, Oct 20 (Reuters) – The U.S. government plans a half billion dollars in subsidies to help farmers grow the next generation of biomass crops — switchgrass and woody plants instead of corn, farm lobbyists and congressional staff workers told Reuters.
Agriculture Secretary Tom Vilsack will announce the subsidy program on Thursday, they said. An estimated $525 million would be paid over 15 years to defray farmers’ costs.


WASHINGTON, Oct 19 (Reuters) – Attacked as subsidy addicts, U.S. ethanol makers may need help from friends in high places, including the White House, to hold on to lucrative tax breaks set to expire at the end of the year.
The industry says it is ready to discuss revisions in the incentives, worth $6 billion a year. An amalgam of foodmakers, livestock producers, environmentalists and deficit hawks say there is no need for subsidies because biofuels are guaranteed by law a share of the motor fuel market.