Tuesday's announcement by the Commodities Futures Trading Commission to initiate a variety of measures aimed at addressing commodity market volatility is the first step to addressing the U.S. farmers' real concerns and problems, says Tom Buis, National Farmers Union president.
"The roller-coaster volatility of market prices has pushed traditional market users out, leaving farmers stuck with higher input expenses and no way to capture today's commodity prices," he says.
CFTC's announcement answers some of the questions among producers, such as: How much institutional and investment money is being invested into the commodity markets; and why some farmers have been precluded from participating are left unanswered, according to Buis.
He says more needs to be done in determining the impact of over-the-counter trading and swaps on the markets.
"The CFTC response a first step to ensuring markets are properly functioning, but more needs to be done to ensure markets are fully transparent and the regulatory scope of CFTC maintains the same pace as new emerging financial tools," Buis notes. "We will continue to pursue changes to ensure we have a fully transparent market free of manipulation by speculators or others."
Source: National Farmers Union