CMC Attends IIF Annual Meeting

Over this past weekend, CMC attended the annual meeting of the Institute of International Finance (IIF) as a special invitee, having contributed to that organization’s position paper on derivatives regulatory policy. The paper, in which CMC’s help has been graciously and formally acknowledged, was on prominent display at the meeting, and many of the over 1,000 attendees took away copies (the IIF ran out of copies despite printing several hundreds). The stimulating panel discussions at the meeting were both wide and deep in their content, covering various aspects of global financial reform, monetary policy and fiscal policy. In addition, the venue also provided an excellent networking opportunity for CMC to liaise with senior international financial services executives and government officials. Being associated with the IIF is a positive for CMC, both because the IIF is expanding its commodity derivatives policy coverage and because it is a well-known institution with a broad reach that is playing an instrumental role in resolving the European debt crises.

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CMC Meets with International Institute of Finance

CMC met with senior executives at the International Institute of Finance (IIF), which is based in Washington, DC and is a think-tank, advocacy group and networking forum in the global finance and economics space.  IIF was instrumental in creating the recent bail-out plan for Greece that was accepted by the EU and its member states.  IIF evinced a strong interest in working with CMC on global commodities and financial regulatory issues.  CMC has also been invited to the exclusive IIF annual meeting in September 2011 in Washington, DC.

CFTC Updates

CMC has long sought, through communications with the CFTC and numerous discussions on Capitol Hill, to encourage the CFTC to better coordinate its rulemaking with global commodities and derivatives regulators, so as to not unduly harm American businesses, job creation, capital formation and market liquidity. It is heartening to note that the CFTC has acknowledged our concerns by planning this meeting.

CFTC and SEC Staffs to Host Public Roundtable to Discuss International Issues relating to the Implementation of Title VII of the Dodd-Frank Act
The staffs of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will hold a joint public roundtable on August 1, 2011, from 9:00 am to 4:00 pm, to discuss international issues related to the implementation of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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Cotton Declines From Record as Global Production Poised to Jump

Cotton fell from an all-time high, halting the longest rally in more than a year, on speculation that rising production will help ease a supply shortage.

Global output will jump 11 percent to a record 27.6 million metric tons in the year starting Aug. 1 after prices surged, the International Cotton Advisory Committee said on March 1. China, the world’s largest producer and consumer, aims to boost its crop by 14 percent, according to a government report last week.

“We’ve got quite a bit more cotton coming in the future,” said Sid Love, the president of Joe Kropf & Sid Love Consulting Services LLC in Overland Park, Kansas.

Cotton for May delivery fell 3.28 cents, or 1.5 percent, to $2.1086 a pound at 11:07 a.m. on ICE Futures U.S. in New York. Before today, the price gained for seven straight days, jumping 21 percent in the longest string of gains since September 2009. The commodity reached a record $2.197 yesterday.

The fiber has more than doubled in the past year as surging demand outstripped global supplies.

Cotton’s 14-day relative-strength index was above 70 on March 4 and March 7, a signal to some investors that prices were poised to fall.

“It’s a correction as the price went up too much and too fast,” said Toshimitsu Kawanabe, an analyst at commodity broker Central Shoji Co. “There’s little change in fundamentals; supply is scarce this season.”

To contact the reporters on this story: Chris Prentice in New York at cprentice3@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net