CMC Continues To Push For Retention of Key Census Bureau Report In Meeting With USDA

CMC joined with our ag colleagues to continue our push for the retention of key Census Bureau reports in an hour-long meeting yesterday with USDA.  The reports we seek to preserve report on soybean meal and oil production, wheat flour, and cotton consumption.  While USDA is keen to have the reports continue, budget pressures at the Census Bureau make it very difficult.  Some of these reports date back 100 years, so any lapse in the data would be harmful.  We plan to continue working with our colleagues at the Census Bureau, USDA, and on the Hill.

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In Case You Missed It…5 Articles To Read

To mark the first anniversary of Dodd-Frank, here are some key insights.

1.   Atlas Shrugged: Will Regulators? — Funding SEC and CFTC

Meanwhile, SEC and CFTC officials have held more than 1,300 meetings with outside firms and individuals to discuss the Dodd-Frank law since it was passed, according to a tally by law firm Davis Polk & Wardwell LLP. So far, the SEC has missed more than three-quarters of its Dodd-Frank rule-making deadlines; the CFTC has missed 88% of its deadlines, the law firm said.Geithner steps to the defense of Dodd-Frank

Two and a half years ago, with our country on the edge of a second Great Depression, we met with the president in the White House to discuss whether to move in those first months of his administration to legislate fundamental reform of the financial system—or wait until we had put the crisis behind us.

2.   A comprehensive summary of Dodd-Frank

3.   CMC joined with our ag colleagues to push for retention of key Census Bureau reports.

          Agricultural Groups Scramble to Save Critical Reports

CHICAGO (Dow Jones)–Producers of cotton, wheat flour and livestock feed are searching for ways to avoid losing Census Bureau reports critical to their industries that are slated to be discontinued due to budget cuts.

A coalition of agricultural trade associations is slated to meet Wednesday with the top economist of the U.S Department of Agriculture to discuss attempts to save the reports issued by the Census Bureau. Time is running out to find a solution, as some of the reports will be stopped after next month.

4.   CMC’s work on swap rules related to portfolio hedging with the Energy Working, jointly known as the Commercial Alliance, was highlighted in a recent Platts article:  Energy group wants CFTC to take a larger view for swaps rules.

According to the group’s letter, basing new rules on each swap transaction, rather than on a company’s overall portfolio, is “flawed” and would “degrade risk management best practices in swap markets.” For example, the group highlighted a utility company whose hedging portfolio may be long for physical generation, but short physical load obligations. The group argued that the CFTC should view the overall portfolio of hedging as the basis for determining if the company’s hedging is speculative or a legitimate hedging strategy, rather than making this determination based on an individual swap.

“If a transaction-by-transaction approach is taken to its logical end, the utility would be required to put on an individual hedge for each of its customer accounts, of which there might be millions,” the group wrote.

5.   See Brian Scheid’s Platts article below.

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