CFTC to Address Convergence IssuesErica Venancio posted on 5/27/2009Poor convergence in the agriculture markets continues to attract concern and the CFTC has announced it has appointed a committee to bring together relevant information on the potential causes and help investigate possible solutions. (Click here for a list of committee members) The CFTC Committee is expected to hold at least three meetings during the first half of calendar 2009 and report its findings to the agency's Agricultural Advisory Committee. In the grain markets, much of the concern over convergence has been focused on the CBOT wheat contract.
CME ag economist Dave Lehman points out the exchange has a variety of changes including new delivery territories and seasonal storage rates set to become effective in July 2009. In addition, tighter vomitoxin limits will take effect beginning with the 2011 wheat futures contract. (click here for a summary of the CME wheat contract changes) He said the exchange is optimistic that these changes will help address convergence issues.