July 21, 2008


US congress urged to stabilize volatile agricultural market


The US Congress has been asked by the American Feed Industry Association (AFIA) to stabilize futures markets of agricultural goods, which face unpredictable price fluctuations.


In the letter, AFIA President and CEO Joel Newman said there is a critical need for the grain, oilseed and ingredient commodity markets to divulge truthful and accurate information regarding supply and demand situations.


Mr. Newman said speculative interest in agricultural commodity futures and large trade volume of some crops on a daily basis contributes to price volatility. However, the original Commodities Exchange Act was inadequate as it neglects the size and influence of large financial players. 


The US feed industry is the largest buyer of corn, soybeans, their processed products and by-products.


AFIA submitted to the letter to Senate Majority Leader Harry Reid, other members of the house and Senate Leadership, and agricultural committees, timed to coincide with Reid's introduction of the Stop Excessive Energy Speculation Act of 2008.

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