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At the recent Dairy Industry Advisory Committee (DIAC) meeting a representative of CME gave a presentation: http://www.fsa.usda.gov/Internet/FSA_File/1_perterson_cme_diac_jun_rev.pdf
In spite of how the name might appear to be spelled in the above link, the representative was actually, Paul E. Peterson.
The CME always has the excuse they do not control how people might use the information.
However, the reference to the GAO study: http://www.gao.gov/new.items/d07707.pdf is outright misleading. On page one, the GAO states, "Market Oversight Has Increased, but Concerns Remain about Potential Manipulation"
But, although he never brought it up, the CFTC did find evidence of manipulation in its settlement with DFA. DFA even violated CME rule and never seems to have had a slap on the wrist from the CME.
Look, we have just had the block price fall to near support. The players Jerome and Mullins on the seller side have no interest in farmers getting a fair milk price. On the buying side predominantly,is Schreiber. Where is the countervailing force?
To call the CME a market is one thing. For the CME to actually be a market is quite another. But, what is the difference to political hacks?
What a joke! About as much transparency as this administration. Any REAL farmer on this committee would have to be either outraged, or they ship with DFA and have their eyes and ears closed.
ReplyDelete"Spot markets are designed for trading SMALL QUANTITIES to fill short term needs or ADJUST INVENTORIES". By adjusting inventories of course they don't mean "let us now adjust the milk price" do they? Also as is shown the input price is determined by the end product price. I don't know of any other products produced by man where this formula is used.
ReplyDeleteAs long as they can get away with pricing milk this way it will continue. Now they are adding SMP and Cheese futures and options to "help" us,another way to make money and manipulate prices- but it is "all good" Maybe after I'm finished (real soon) I can become a consultant!!!
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