Moves to impose position limits on non-commercial hedgers in commodity markets mark an important step in the right direction to tackle volatility in wheat futures, says the American Bakers Association (ABA).
Some regulation of commodities futures markets could be beneficial – but should stop short of tight limits or an outright ban, the Food and Agriculture Organization (FAO) has said in a new policy brief.
The wheat futures market, used by wheat farmers and processors to manage price risk, could lose its relevance unless efforts are made by the Chicago Board of Trade to bridge the wide gap between futures and cash prices, finds a new study.
The US Commodity Futures Trading Commission (CFTC) has approved changes to the Chicago Board of Trade (CBOT) wheat futures contract in an effort to bring prices back in line with cash values – but warned that they may not go far enough.
Lower futures prices for wheat herald a shaving of input costs for bakers and millers, with the collapse of Lehman Brothers and the near-bankcruptcy of global insurer AIG arguably hitting agricultural quotations downwards.
A leading US dairy cooperative has denied any wrongdoing over
allegations that it may be involved in price fixing for some of its
products, as yet another country finds its dairy markets under
The International Cocoa Organisation (ICCO) monthly review of the
cocoa market suggests that a decline of the monthly average ICCO
daily price in April compared to the previous month could be
misleading as far as futures markets are...
From today the plastics packing industry will be able to give more
consistent prices to buyers if they are able to successfully hedge
their bets on the London Metal Exchange (LME)against volatile
polymer prices, reports Ahmed ElAmin.
Global chocolate supplier Barry Callebaut said that recent
acquisitions had boosted its six month figures, with net profit
showing double-digit growth. But low cocoa prices affected
activities at the processing arm of the company.