August 5, 2010

Kansas City Wheat ’Convergence’ Needs Fix, CFTC’s Gensler Says

By Alan Bjerga

Wheat futures on the Kansas City Board of Trade lack “convergence” with spot prices and need fixes similar to those made on the Chicago Board of Trade, Commodity Futures Trading Commission Chairman Gary Gensler said.

Cotton contracts offered by IntercontinentalExchange Inc. also need examination, Gensler said in a statement prepared for a hearing of the CFTC’s Agricultural Advisory Committee today in Washington. CME Group Inc., owner of the Chicago Board of Trade, began storage-rate increases of 3 cents to 8 cents per bushel last month to improve alignment of cash and futures prices, allowing farmers to better manage risk…

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Last Updated: August 30, 2010